In numerous states, personal unsecured loan products are being subjected to new regulations, mostly based around who offers them. These regulations are intended to help customers in need of large or small loans protect themselves from unscrupulous agents. In 2008, the federal government passed regulations comparable to New York’s 2006 law.
New York state loans requiring licensing
The employees that really offer mortgages when working for money advance lenders that offer mortgages are the target of this regulation. As of July 31, any mortgage loan officer who wants to work in New York State must have a license. In order to get this license, an agent must complete a 20 hour training course. Applicants also must pass tests, criminal background checks and financial background checks. In the next few years, there are similar laws that will go into effect.
Limiting opportunities for dangerous employees
The Secure and Fair Enforcement for Mortgage Licensing law addresses one very specific problem. A unique subset of lenders created the fast cash advance products that contributed to the economic recession. The employees that work for lenders which were licensed did not have to have their own certification. Mortgage loan officers who were known to make no credit loans or bad loans could jump from job to job.States can keep closer tabs on mortgage lenders with these licenses.
Relatively weak licensing requirements
By addressing issues within the mortgage business, the new law does help, but some are worried it may not be enough. Most say that the required 20 hours of training simply is not enough. There is a minimum of 75 hours of professional training for most licenses. The Nationwide Mortgage Licensing System and Registry is providing a search that will help you discover a mortgage lender that has a license.
