In many states, personal unsecured loan products are being subjected to new regulations, mostly based around who offers them. Unscrupulous agents that offered small loans and large loans to customers are the intended target. When New York passed these regulations in 2006, the federal government passed comparable laws in 2008.
Licensing loan officers in New York
The newest regulations in New York state are intended to regulate not cash advance lenders that offer mortgages, but their agents. As of July 31, anybody who wants to work as a mortgage loan officer must be individually licensed. In order to get this license, an agent must complete a 20 hour training course. Financial, criminal, and knowledge tests are also required for the license. Within the next few years, there are similar laws that will go into effect.
Limiting possibilities for dangerous employees
The New York law and the Secure and Fair Enforcement for Mortgage Licensing federal law passed in 2008 address a specific problem. The economic recession came about, in part, because of cash advance products offered by a certain subset of people. You didn’t need a separate certification if you worked for an employer that had a mortgage license. .States can keep closer tabs on mortgage lenders with these licenses.
Light licensing requirements
While the reform that has been implemented as of July 31 addresses numerous issues within the mortgage business, some are questioning the requirements. Some people think that 20 hours of training won’t be enough. In most states, licensed professions require a minimum of 75 hours or more of training. Either way, the Nationwide Mortgage Licensing System and Registry is now providing a search for borrowers to identify whether they’re working with a licensed mortgage lender.
