Quick Update on Loan Originator Licensing

Rhonda Porter on 02 5, 2007

 

Since I’ve covered Loan Originator licensing before on Rain City Guide, I thought I should provide this update.   Apparently DFI is loosening up on their previous decision to not allow LOs to take loan applications if they did not submit the required information prior to the original January 31, 2006 deadline.  

So if a Loan Originator did not follow the new simple rules before January 1, 2007, they can still practice business if they just complete DFI’s online application, the MU4 form and submit their fingerprints for the background check.    As a Licensed Loan Originator who was able to take time out of my busy schedule to comply with DFI’s requirements, I’m just a little concerned and I hope this is not a trend.

 

 

About the Author: Rhonda Porter

Rhonda Porter began her mortgage career on April 1, 2000 at Mortgage Master Service Corporation, a family-owned correspondent lender that has been lending in the Pacific Northwest for over 30 years. Prior to mortgage, she was in title industry for 14 years where she managed an escrow branch and gained an invaluable insight to the real estate industry. Rhonda Porter is a Licensed Loan Originator 510-LO-32047 (MLO-121324). Rhonda is also the Chairperson for the Social Media Committee for WAMP (Washington Association of Mortgage Professionals). Inman News named Rhonda one of the Top 50 Online Influencers of 2009. She was recognized in Seattle Weekly's Best of 2009 issue as the Best Twitting Mortgage Broker http://www.twitter.com/mortgageporter) and Sellsius 2007 Top 12 Women Real Estate Bloggers and 2007-2008 Maginficent 7 Consumer Articles. Rhonda originates mortgages for homes located in Washington State. You can reach Rhonda at rhonda@mortgageporter.com or by calling (206) 718-9488. NOTE: Rhonda Porter and Mortgage Master Service Corporation are not affiliated with any real estate brokerages.

4 Responses to “Quick Update on Loan Originator Licensing”

  1. Toby Barnet
    February 5, 2007 at 9:25 pm

    Reversing the original decision doesn’t do anything to help the cause of bringing credibilty to the lending industry IMO. It seems that loosing the restrictions on LOs by the DFI would allow for more unlicensed professionals to enter the market without any accountability.

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    #90892
  2. Rhonda Porter
    February 5, 2007 at 9:56 pm

    I wouldn’t say the original decision has been reversed. LOs (mortgage brokers) still need to become licensed and pass the exam (once it’s available). DFI is just not sticking by the original cut-off time of December 31, 2006 for LOs to submit their information for the background check and application.

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    #90920
  3. Brian Brady
    February 7, 2007 at 12:13 am

    Why enforce existing laws when you can legislate new ones? Look for the “Loan Originator Licensing Compliance Act of 2007″ to come from your legislature in the summer.

    Lending is about: (a) analyzing guidelines/rules (b) documenting a file properly (c) doing this in a timely manner to meet deadlines

    What better test than the registration/licensing book to test those three skills? It seems that the non-compliant ones failed the first big test.

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    #92720
  4. Rhonda Porter
    February 7, 2007 at 6:15 am

    Exactly! You would think DFI would have kept with the original deadline of December 31, just to make processing the LO applications (who did comply) more streamlined for their staff. Instead of opening the floodgates to those who did not have their act together.

    Reply
    #92920

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