Support for National Origination Licensing

dave_donhoff

15 years ago

Read Thread

NAMB backs Paulson's proposed commission.

By Jennifer Harmon

DIST. OF COLUMBIA

Wants Oversight of Everyone

Nat'l Assoc'n of Mortgage Brokers are FOR,

Bankers (enjoying longstanding exemption) are still resistant...

<_snip_>
NAMB has long contended that real consumer protection can be achieved by creating a single national registry that includes all mortgage originators, including mortgage brokers, loan officers and bank employees who originate loans at a bank or bank subsidiary, credit union, or mortgage brokerage; and to create national standards that include professional education, and passage of a examination and criminal background check.

For some time, federal financial institutions have been "untouchable" when it comes to enforcing state consumer protections imposed on individuals originating mortgage loans. State requirements for criminal background checks and education requirements for mortgage originators have been pre-empted by federal regulators, according to NAMB. The association believes a uniform standard for individuals in the mortgage origination business should mean "uniform" and also apply to those employed by federal institutions and their subsidiaries.

<_>

Mortgage brokers typically operate in small, client-centric firms, and by definition have nothing of their own to "sell" but their financial services, fulfilled with wholesale bank product. Bankers know that if held to "even playing field" standards, they'll have a massive increase in overhead to achieve the same levels of staff & officer quality the smaller brokerage office niche delivers.

Virtually nobody who goes to the trouble of the continuing education for actual licensing, and the hassle of knowing enough about finance to serve from a client's perspective... is willing to work in the retail boiler-shops. This is ESPECIALLY true when the consumers aren't falling out of the sky into the loan pipelines.

If the National Association of Mortgage Brokers have their way, the individual professional quality threshold of entry to the industry will be raised dramtically.

Cheers,

Dave Donhoff

Leverage Planner

Sort by:Oldest

Comments (3)

dave_donhoff
Original Author
15 years ago
one day on top is enough for this post...
triciae
15 years ago
Dave,

I don't really understand what this is all about with the NAMB?

Anyone working at a bank or credit union already has to pass a background check. So, that part of the NAMB's position doesn't make sense.

Also, every bank & credit union employee must take an ANNUAL test on all regulations. The CEO & all executive management, including my DH, has to take the test right along with the tellers, originators, servicing personnel, etc. Regulations routinely change. It's important for every employee to be current...hence, annual testing.

True, there is no licensing of employees but the components of licensing are already in place. It's the brokers that haven't had to submit to background checks or testing until very recently.

Banks/credit unions cross-train employees on a rotating basis as part of succession planning management. Even the tellers are required to take that annual test. What a PITA it would be if at every cross-training rotation licenses must be obtained. Any why? Everybody's already submitted to a background check.

I agree that mortgage brokers should have background checks, be trained & tested annually.

/tricia
Related Discussions
Dawn, license and registration please!
Q
Comments (18)
Dawn, I agree with you and the main person involved in 95% of these heated discussuos is why I don't visit a few of those forums anymore. If it was just one or two issuse personally dear to them this I could understand. But when they feel their opinion should be the official and only one on every issue then it grates me the wrong way. Just like the DTM issue that she don't like. And has even got Baker Creek asking if they were early, mid or late season in your garden. That type of description is worthless in my opinion. Late season is 70-85 days if I remember correctly. A lot of differnce. It is like some posts I saw by a breeder and grower. He said the best and most useful is listing daylight hours required to maturity. I know you know what I'm talking about but some reading it might now. It runs along the same thinking as short, intermediate and long day onions. Basically it takes som many hours of sunlight for a plant to reach maturity. So the further north a plant in grown where the days are longer it takes less. And the as you go where day length is shorter during the growing season it takes more days. I've found that to be true for me. When getting seeds from a grower from where days are shorter during the grwoing season I substact 5-7 days from her growing times and when grown by some growers with longer days I may add 5-7 days and have found this to be very close for me. A lot more useful than say mid season. And I don't have a problem with them listing mid season as long as they continue to list DTM's. Yes we may not always agree here on everything but we disagree in a friendly way and respect the opinions or others. Off my soap box again. Better get back outside on this nice day. Pulled the mulch back in a few spots this morning and the garlic that hasn't been in 3 weeks yet is poking through the ground. Now has 5-6 inches of mulch to get through. Ground nice and warm. Some more things popping through in the cold frame. Need to plant some more that has came in since I planted. More seeds arrived today. Had to come in and look at my early Christmas presents. LOL. Hope everyone is receiving this beautiful weather. Jay
...See More
Why no national licensing for GC's?
Q
Comments (20)
Re: "Posted by jasonmi7 (My Page) on Sat, Apr 11, 09 at 22:55 My question is; if many of you feel there should be much more strict standards on GC licensing; what are you doing to make it happen? How many of you have contacted your state legislatures, your congresspeople, run petitions? What have you done?" Good point and one I hope every reader takes to heart. I personally have become quite involved in local politics over this exact issue. I've also been involved w/consumer organizations that deal w/the issue, signed petitions, written countless letters, etc. Many people quickly become discouraged and give up, when they find out the legislators are more interested in getting campaign donations from the local buiders association. But I think in time, if people stick to it, they often have some success. I've kind of concluded that licensing is not in itself a good solution--there needs to be a licensing board that is not just run by builders as that's just more self-regulation and it never works. A bond is a good idea, but also there needs to be a public complaint database that isn't censored by the govt or builders or anyone. Criminalizing certain construction frauds is also needed. Educating consumers is also needed and that's something anyone can do, to share what they know about their construction mishaps, what they learned about the state's licensing or lack of it, etc. I was, and still am, determined to make my bad experience be worth something, so I continue to work in these issues and encourage others to do the same. If you want things to improve you have to work on it. It doesn't work if people just sit there and assume a handful of consumer advocates like hadd.com and hobb.org will do all the work. They need numbers of people to help. Citizen apathy is a very bad thing, whether it's about homebuilding, taxes, health care or any issue.
...See More
Personalized license plates and bumper stickers
Q
Comments (29)
I too have the "burn at the stake" one. I must have forty or so accumulated over time (and I'm talking about around 8 years) in an envelope in my glove compartment. People give me stickers fairly often - I keep the ones I like best and pass along others - and they're not exactly expensive investments. The ones from the Northern Sun catalog are the priciest ones I ever buy at $2. Allison, although there is a risk of theft, you can mount a regular sticker on the very thin magnetic sheets from any craft store. Barb, the dragons sticker is a spinoff of the line from one of the Lord of the Rings books - "do not meddle in the affairs of wizards, for they are subtle and quick to anger". I picked that one up in a science fiction bookstore. (One of my dream bumper stickers would read: Do not meddle in the affairs of wizards, for they are subtle and quick to anger. -- JRR Tolkien No matter how subtle the wizard, a knife between the shoulder blades will seriously cramp his style. -- Steven Brust) I'll grant that there are many bumper stickers out there that make me wish I had a rocket launcher mounted on the hood of my car - usually expressing some kind of hate-filled, couldn't-pry-that-closed-mind-open-with-the-Jaws-of-Life vileness - but I would never even consider defacing someone else's property no matter how much they p!$$ed me off. I saw one today that made me rather sad: "War does not define who is right. It only defines who is left." (As in left alive.) So true, and I wish it weren't. However, I don't care to put any kind of advertising stickers on my car, just like I don't wear clothes with brand or store names splashed across them. (I do like to wear kooky t-shirts, I'll admit it, because I think it's fun to make people do a double-take. My favorite is worn to tatters - reads "give me that old-time religion" with a drawing of people dancing around Stonehenge. LOL) I figure if a business wants me or my car to be a billboard they can dang well pay me for it.
...See More
License plates...how many
Q
Comments (11)
There is now a reciprocal agreement with the Native American Indian reservations and there are 7 different tribe plates in my state. The state has 4 different official plates for state owned vehicles. And 15 different dealer plates. Plus there are 30 different special issue plates which include such things as; Antique, Hobbyist, Modified, and two different ones celebrating the home football team (none for baseball), the state university (but none of the extensions), the Sesquicentennial plate is in use and replacement plates are still made but no longer allowed a new issue, various military plates are conditionally offered offered and a Gold Star plate for immediate family members available conditionally. Then there are others that charge a high fee where part of the money is a donation to an organization like endangered species. also there are "blank" numbered plates where one has to apply to the organization such as the Freemasons, who then are allowed sell a decal that is applied to the plate. There are also different plates for motorcycles, buses, farm vehicles, trucks, motorhomes, taxicabs, drivers ed vehicles, low speed electric neighborhood vehicles and temporary plates for new cars. Then there are all sort of quirks, like the collector plate comes in two colors; one for sellers, one for owners and one must also own a "regular" plate for another car with can have the same registration number. So that makes about 90 altogether. they have cut down greatly on the number of choices for special plates designs for autos. People just weren't buying them, and it was too costly to offer such a variety.
...See More
dave_donhoff
Original Author
15 years ago
Hi Tricia,

I don't really understand what this is all about with the NAMB?
Anyone working at a bank or credit union already has to pass a background check. So, that part of the NAMB's position doesn't make sense.

Sure it does... if they're complying with a national requirement THE SAME AS proposed for brokers, no problem.

True, there is no licensing of employees but the components of licensing are already in place. It's the brokers that haven't had to submit to background checks or testing until very recently.

MOST state broker licenses require significant regulatory education & testing (including annual,) and full background checks. Loan officers (same as 'bank employees') have been able to skate below the radar.

The proposal is simply to regulate the ACTIVITY (i.e., if you originate, you comply exactly the same way, regardless of your firm.)

Banks/credit unions cross-train employees on a rotating basis as part of succession planning management. Even the tellers are required to take that annual test. What a PITA it would be if at every cross-training rotation licenses must be obtained. Any why? Everybody's already submitted to a background check.

A teller doesn't get to rotate into a fiduciary advisory position without significant education & licensing. The regulatory world wants mortgage origination to be treated as a fiduciary advisory industry, no longer a "pushing product" sales industry.

Is it a PITA... sure, but why does that have any relevance as to why banks ought to put uncleared personnel into such fiduciary positions?

I agree that mortgage brokers should have background checks, be trained & tested annually.

That's pretty much been the case in most states already, and for many many years. The issue is to reign-in the street-level soldiers-for-hire (the front end originators, regardless of who they get their checks signed by.)

There are rogue thieves that get street-soldier "finance sales" jobs WHEREVER they can... and the national registry will prevent these hucksters from being pilloried in one state, then moving to the next-door state and getting the same job with a differently regulated organization.

Cheers,
Dave Donhoff
Leverage Planner

Support for National Origination Licensing

Comments (3)

dave_donhoff
Original Author

triciae

Related Discussions

dave_donhoff
Original Author

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

Support for National Origination Licensing

Comments (3)

dave_donhoffOriginal Author

triciae

Related Discussions

dave_donhoffOriginal Author

COMPANY

BUSINESS SERVICES

GET HELP

CONNECT WITH US

dave_donhoff
Original Author

dave_donhoff
Original Author