In New York state, and soon in many other states, officers that offer personal loan products for instance mortgages are now subject to new regulations. Agents that offered both large and small loans that were not up to snuff are the target of these regulations. In 2008, the federal government passed regulations comparable to New York's 2006 law.
New York state loan licensing
The employees that actually offer mortgages when working for money advance lenders that offer mortgages are the target of this regulation. As of July 31, any person who wants to work as a mortgage loan officer must be individually licensed. Getting this license needs a 20 hour course in responsible lending. Financial, criminal, and knowledge tests are also required for the license. Within the next few years, there are comparable laws that will go into effect.
Addressing loan job jumpers
The Secure and Fair Enforcement for Mortgage Licensing law addresses one very specific problem. Many of the bad loans and fast cash advance products that contributed to the economic downfall came from a unique subset of lenders. The employees that work for lenders that were licensed did not have to have their own certification. This meant that some mortgage loan officers would make bad loans or no credit loans, push unneeded loan products, then jump from job to job when they received fired.By maintaining a record on the lender's license, states could be able to keep closer tabs.
Light licensing requirements
By addressing issues within the mortgage business, the new law does help, but some are worried it may not be enough. Many licensed professionals say that 20 hours is not enough training. In most states, licensed professions require a minimum of 75 hours or more of training. The Nationwide Mortgage Licensing System and Registry is providing a search that will help you discover a mortgage lender that has a license.
There are always new rules and regulations for the people from the different authorities dealing with the same. These regulation help a lot to get better facilities for general public.
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