Proposed LO Transitional License May Have Issues

08/17/2017
Comments
  • My points would be these:

    1) Are you taking the stand that non non banks will hire for the sake of putting bodies into LO positions without doing any research of experience, no reference check or verification of referral sources? Shame on the industry if they do that and if they do that, what else are they doing to cut corners? Affidavit may become useless in these cases
    2) Vast majority of deposit institutions DO NOT register tellers. What we see is LO’s, LOA’s and Banking Center Managers compromising the majority. Some register processors.
    3) There are many excellent depository LO’s that would make a move to a non bank but won’t concede income and loss of referral sources during the down time. We know the commission difference between deposit institutions and non deposit lender can be huge
    4) Deposit institutions are much more regulated than non depository on compliance, Bank required testing than non depository. Ask a bank employee engaged in mortgage lending how many training classes and tests they are required to take each year.
    5) While some states have minimal backlog on registrations several states are backed up

    Good points on your end and always good to look at all sides

    Ed Hensley August 17, 2017 6:09 am Reply
  • Why are we even wasting time with This? We should be pushing for conformity in the industry. Everyone should need their 20 hours and continuing education to level the playing field. These rules were established to stifle competition and force brokers out of the business and have been highly successful. Now is our time to push back and signal that we have had enough.

    Michelle Chmelar August 17, 2017 6:16 am Reply
  • As a veteran that has been doing this since the early 80’s, owned my own brokerage, working both mortgage companies and banks. I have to totally disagree about coming from a bank, I will guarantee 2 things: 1. I have much more training that is required of me on a quarterly bases at a bank than the required CE that is required for renewal.2. I will also let you know that compliance is a lot stricter and on a more current monthly bases. We have to submit a closing list to a third party, then a percentage of the files and they are submitted for review. A bank also has more audits that are required than a mortgage company.

    LO’s that have stuck it out through all the changes over the years, evidently are very knowledgeable of what it takes to be successful, know the guidelines and follow all requirements. Perhaps something goes into place that looks at the length of time that the LO’s have.

    Lisa Pape August 17, 2017 10:48 am Reply

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