Another feature of the Housing Bill is establishing a national registration for mortgage loan originators.
Tennessee has required licensing for originators for the last couple years, and is now in the process of implementing continuing education requirements.
According to the housing bill summary, this legislations "establishes a nationwide loan originator licensing and registration system that will set minimum standards for loan originator licensing substantially improving the oversight of mortgage brokers and bank loan officers."
It will be interesting to see how this registration system works and how much the national licensing will cost. Also, it will be interesting to see what the minimum standards for loan originators will include.
According to RISMEDIA, the minimum standards will include a background check, a qualification test, and annual continuing education requirements for bankers and brokers.
This may very well make for positive and lasting changes in the industry. I was glad when Tennessee adopted its continuing education requirement. It seems to be very much needed.
This provision and the changes to FHA lendingare two of the lesser publicized parts of this bill that have significant long term implications.
Richard Smith
Home financing in Tennessee, Georgia, and Alabama.
Experience matters when it is your home loan.
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