Mortgage servicers and mortgage lenders are already regulated in most states, mortgage loan officers have no such regulations which could allow for entry of unscrupulous loan operators who act illegally or may have criminal backgrounds.

Mortgage training would include background checks and continuing education as part of any new laws passed concerning mortgage brokers and mortgage loan officers in those states that do not have laws already in place concerning their mortgage loan officers.  There is a national loan officers licensing law which debuted July 1 of this year and is helping to keep the mortgage loan officers on the straight and narrow.

The idea behind licensing mortgage loan officers is to make sure people on the front lines, those people dealing with the customers, are giving them the straight information they require on the variety of programs and products available to them.  This helps make sure they have a fiduciary responsibility to help the consumer.

These regulations are for independent brokers and not banks because banks feel they already face more regulations than the independent brokers.  Among some of the provisions included are: a 24 hour pre-registration education covering state and federal law ethics; those who have been working in the mortgage industry for at least 4 ½ years are exempt as long as they can pass the first test.   Criminal background checks and fingerprints will be run to screen out people convicted of or pled no contest to misdemeanors or felonies relating to forgery, fraud, embezzlement, a financial transaction or securities transaction or any felony within the previous 10 years.  There will be a one time $350 fee plus an annual renewal fee that is to be determined in each state.  The National Mortgage Licensing System charges a fee of $30 and their annual fee is also $30; and the tests fee is $100.

NMLS education is part of the National Mortgage Lending System and provides its users with the tools, tips, updates and current news to help them better perform their duties as mortgage lenders and loan officers.  This organization runs renewal workshops through web-based training seminars in addition to updating the current regulations for each individual state – which changes regularly when different bills and regulations are passed through the local government.