At the end of 2007, Washington State had 13,722 loan originators licensed under a mortgage broker. At the end of 2008, that number fell to 8739. As of May 5, 2009, we’re at 5335. This number also includes inactive licensees. Based on the number of LO students who tell me that they already have a full time job elsewhere and are just keeping their license active “just in case” they want to originate a deal for a friend or family member, I’d say the number of active licensees is below 5335.
In 2008, many mortgage brokers were forced to re-license as consumer loan companies due to changes in state law. Subsequently, many of those LOs let their license go in 2008. LOs who work for a consumer loan company will start their licensing process in August and we will be able to better track the number of consumer loan company LOs licensed in WA State. As more lenders begin using the National Mortgage Licensing System to verify if the person who originated the loan is licensed in that state, perhaps some of the unlicensed, out of state shadow LOs will start being counted.
Consumer Loan Companies include Correspondent Lenders, thanks the the State’s law that really pulled the rug out from many Correspondent Lenders who were abiding by the Mortgage Brokers Practices Act and licensed.
Jillayne, I agree with you that the number is likely well below 5335. Especially if you were to factor out “the part timers”.
Once those who fall under CLA (and never were licensed under MBPA) have to go thru the hoops we did, we may see more fall out for all the same reasons…and by next year, the Gov. may no longer manipulating mortgage interest rates so the refi mania will be over (more incentive for those who really aren’t meant for this biz to get out).
Consumer Loan Companies include Correspondent Lenders, thanks the the State’s law that really pulled the rug out from many Correspondent Lenders who were abiding by the Mortgage Brokers Practices Act and licensed.
Jillayne, I agree with you that the number is likely well below 5335. Especially if you were to factor out “the part timers”.
Once those who fall under CLA (and never were licensed under MBPA) have to go thru the hoops we did, we may see more fall out for all the same reasons…and by next year, the Gov. may no longer manipulating mortgage interest rates so the refi mania will be over (more incentive for those who really aren’t meant for this biz to get out).
By the way, Deb Boitner from DFI will be speaking at two WAMP events next month about the SAFE Act and who needs to be considering licensing now:
June 4, 2009 from 4-8pm at The Venue on South Union in Tacoma. Along w/Deb Boitner will be a social media class and cooking class from The Three Chicks.
June 19, 2009 starting at 12:30 at Safeco Field Ellis Pavillion. Deb Boitner will be at this event too along w/yours truly as a speaker with social media tips for LO’s and David G from Zillow.
If anyone’s interested, let me know. I wouldn’t have done this shameless (or shamefull) plug…IF Deb Boitner was not at both events to discuss the SAFE ACT and Mortgage Originator licensing.
Forgive me, Jillayne? 😉
By the way, Deb Boitner from DFI will be speaking at two WAMP events next month about the SAFE Act and who needs to be considering licensing now:
June 4, 2009 from 4-8pm at The Venue on South Union in Tacoma. Along w/Deb Boitner will be a social media class and cooking class from The Three Chicks.
June 19, 2009 starting at 12:30 at Safeco Field Ellis Pavillion. Deb Boitner will be at this event too along w/yours truly as a speaker with social media tips for LO’s and David G from Zillow.
If anyone’s interested, let me know. I wouldn’t have done this shameless (or shamefull) plug…IF Deb Boitner was not at both events to discuss the SAFE ACT and Mortgage Originator licensing.
Forgive me, Jillayne? 😉
No need to ask for forgiveness; it’s always a good idea to try and attend meetings where a rep from DFI will be speaking. I can give you a sneak preview from when I attended the commission meeting last week but it will have to wait for another day. Too many activities going on at my house right now!
I would love to hear all about your sneak peak…I was not able to attend the commission meeting last week. 🙂
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That is a staggering number of drop-outs. Like many positions in the real estate business, there may have been plenty of part-time LO’s or “deadwood” who weren’t really producing any numbers… profits.
Overall, I feel that consumers will now work with a higher quality of mortgage professional (a good thing).
Where I am, outside Washington DC in the Vienna, Virginia suburbs there has been a lot of LO consolidation, but I don’t think as big a contraction as you have seen.
-doug
Doug,
Jillayne and Rhonda would know better than I, but my guess is the dropped off LOs were not “dead wood” who were “not producing any profit” during the hayday…quite the reverse. Many of those raking it in were later not able to be licensed under the new requirements. My perception based on many of the posts Jillayne has written on the topic.
I think there are too many variables to make any more than a general observation.
The variables include:
How many active loan originators are working under a CLA licence, instead of under MBPA, and thus, may not be counted as a licensed originator (even though they are operating legally)?
How many opted to go to the retail level, where there is no licensing requirement?
How many opted to keep their license active, while working other jobs, in case a loan fell in their lap, or busioness picked up?
The general observations are:
There are much fewer lenders to take loans to (down by 300 or so, with some giants included).
And a lot less people that qualify for loans, with the elimination of entire loan categories.
Ergo, it holds that there are a lot less loan originators, both at wholesale and retail outlets.
On a side note, there seem to be far too few underwriters available at lenders, to move the files quickly.
I think there are too many variables to make any more than a general observation.
The variables include:
How many active loan originators are working under a CLA licence, instead of under MBPA, and thus, may not be counted as a licensed originator (even though they are operating legally)?
How many opted to go to the retail level, where there is no licensing requirement?
How many opted to keep their license active, while working other jobs, in case a loan fell in their lap, or busioness picked up?
The general observations are:
There are much fewer lenders to take loans to (down by 300 or so, with some giants included).
And a lot less people that qualify for loans, with the elimination of entire loan categories.
Ergo, it holds that there are a lot less loan originators, both at wholesale and retail outlets.
On a side note, there seem to be far too few underwriters available at lenders, to move the files quickly.
Hi,
That is a staggering number of drop-outs. Like many positions in the real estate business, there may have been plenty of part-time LOs or deadwood who weren’t really producing any numbers… profits.
Thanks.