| New Law! All Mortgage Loan Originators Must Be Licensed Nationwide
By Doris Crosby
Atlanta, GA (BlackNews.com) -- Many people are unaware how the new law Title V Secure and Fair Enforcement for Mortgage Licensing Act or SAFE ACT, signed by President George W. Bush in 2008, will impact our lives forever. What does this Act really mean to you? Take a look at the mortgage industry collapse. It doesn't take a rocket scientist to see how we got into this horrific subprime mortgage mess.
We can't just blame Wall Street, FannieMae, Freddie Mac or Countrywide without blaming ourselves. We had top-level mortgage executives down in the streets-pounding mortgage loan officers that had no business in the mortgage industry. Uncontrolled spending set us on a course doomed for failure. We had been duped.
The powerful unregulated mortgage giants created unscrupulous mortgage loan officers that did not possess the appropriate licensing or training along with unregulated mortgage guidelines. Those who had mortgage experience took advantage of the fee for all. What other business could you get into making over $300,000 a year as a Mortgage Loan Originator and yesterday you were driving a truck making $40,000 a year?
Few are talking about it or know about the new SAFE ACT of 2008 which states that: "Any individual who for compensation or gain takes a residential mortgage application or offers or negotiates terms of a residential mortgage loan application must be licensed or registered as a Mortgage Loan Originator."
The SAFE ACT of 2008 does not provide any exception to licensing for individuals conducting the above activities. The sad part only a minute of us has knowledge of this law and if we don't act now we will be left behind.
This long overdue law will greatly impact our daily lives. Just think about it. Your local barber shop, nail shop, hair stylist and even your real estate agent must be licensed! Yet, the person responsible to assist you in the largest purchase of your life was not required to have a mortgage license in many states. That's a bit scary.
New federal law requirements for New Mortgage Loan Originators:
* Provide FBI fingerprint
* Provide Credit Report
* Be licensed in each state they wish to conduct loan originator activity
* Pass a national and state component test
* 20 hours of pre-licensure education unless state exempt
* Attend an mortgage school approved by the Nationwide Mortgage Licensing System Registry
Now that you know the new law empowers yourself and your community, check out the Nationwide Mortgage Licensing system at www.nationwidelicensingsystem.org to ascertain whether your State has transitioned and your friendly Mortgage Loan Originator is licensed. Remember that once your State has transitioned, it will be illegal for Mortgage Loan Originators to take a mortgage loan application without being licensed.
PRESS CONTACT:
Doris Crosby
dcrosby@avionce.com
877-985-2349
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