NMLS LO Credit Reports - Career Killer? | Vincent K. Mohr : First Priority Financial, Inc. : Fairfield, CA

Check On My Credit: (November 05, 2010 5:23am)

"NMLS LO Credit Reports - Career Killer" Saw the Think Big Work Small video on the problem Loan Officers might have with credit... Attention Loan Officers.....we will give you a free dispute to help you! Upload your credit report into the system of Check On My Credit if you have one and we will dispute it for free! 1-877-851-4190 ask for Pat https://www.checkonmy.com/

carefree jackie: (November 05, 2010 12:49am)

Looks to me (Realtor since 1975) like the banks have finally gotten what they've been trying to get for years . . . control of appraisals, control of mortgage lending. What's next? Wells Fargo Realty? Now we have Golden Slacks in banking. Will they too become a real estate agency? If the general public had any real idea of what's going on in the lending, appraising and real estate industries, they'd be shocked! One of the best things about the TBWS Daily is reading the comments from everyone across the country. Anyone know what's going on with HB 6218? TBWS talked about it in mid-October. Here's the video link from Bloomberg News: http://www.youtube.com/watch?v=FHiBUlunJUQ

Swarm The Banks: (November 04, 2010 11:24pm)

Bill Clinton was the only president in the past 80 years to actually lower the yearly federal operating budget deficit each and every year he was in office. Bill Clinton was also put through the ringer by the 12 witch hunting republicans, two who had to be replaced because they were having affairs, not to mention Newt Gingrich who never was one of the 12 because of his own affair with an intern. Near the end of his term, his own white house consultants thought he should sign the end Glass Steagall, and since the yearly federal budget deficit was still shrinking and about to become a yearly surplus (to help slay the overall deficit that still existed), it seemed like a positive olive branch to sign the repeal of Glass Steagall. I bet if Hillary Clinton had been elected in 2008 Glass Steagall would have been reinstated, with Bill Clinton's blessing. Just one more reason why Barack Obama was able to line up all of that wall street and big business support.

5pence: (November 04, 2010 10:03pm)

Bono : Lets give credit where credit is due, no honest mortgage lender does no-doc liar loans and NINJA loans without the expectations of default. In 2006 49% of all mortgage loans made were exactly these.

detbroker: (November 04, 2010 9:29pm)

Here is the Pacific Legal Foundation case submittal page: http://community.pacificlegal.org/Page.aspx?pid=544 Let's let them know we're out here and could use their help.

dcessna: (November 04, 2010 9:14pm)

Well, at least Licensed Mortgage Brokers can't be blamed for Foreclosuregate. I wonder if these employees had their credit report checked before they got their jobs? http://www.sun-sentinel.com/business/fl-foreclosure-stern-developments-20101104,0,2802167.story

Bono Vox: (November 04, 2010 8:51pm)

Congrats to Governors Cuomo and Brown!!! We here in Texas appreciate the opportunity to finance homes for all of the business owners who are relocating here. High taxes, high regulation - Thanks, guys.

Bono Vox: (November 04, 2010 8:49pm)

Check out the WSJ editorials from the early 2000's in which Barney Frank was loosening Fannie's requirements for political reasons, Bush was trying to give OFHEO (their regulator) teeth, and Congress wouldn't let him. And Bush let it go instead of pushing back harder. I've said it before I've said it again: enough blame to go around for everyone.

Sea2Summit: (November 04, 2010 8:35pm)

Can you say 'Class Action Lawsuit' ?

REO_James: (November 04, 2010 6:56pm)

The 5% difference in homeownership is very deceptive. Many were buying up and selling their old home. Also many investors were buying all they could.

mclover: (November 04, 2010 6:31pm)

I posted the following today on my site, http://www.creditscorequick.com/blog/2010/11/04/nmls-now-checking-loan-officer-credit-reports/ with a link to you guys... Loan officers should be concerned...

JoeParsons: (November 04, 2010 3:48pm)

@john: No argument there, at all. A lot of the problems and practices were fostered by the misguided belief that home prices would continue escalating, and never drop. Oops... What I take issue with is the contention by some that "It's all Bill Clinton's fault." There have been a lot of bad actors in this whole imbroglio, and I think it's a grave injustice that the *real* culprits--the investment banks who securitized lower-than-snakesh*t loans into MBSs and CDOs and the insurance companies who sold the Credit Default Swaps that they ultimately couldn't cover--aren't coming under fire or suffering any consequences for their pivotal part in the crisis. Quite the contrary; that little company called American International Group (AIG), for example, got something over $180 billion in aid from the taxpayers, and a big slice of that money went into executive bonuses and pricey "retreats" and parties.

Divedude: (November 04, 2010 3:09pm)

Does anyone remember some years back when there was a rash of bad check writing in Washington by congressmen and senators?

jimwikey: (November 04, 2010 2:40pm)

Here's an idea: let's have everyone in Congress submit their credit reports, and eliminate them from office if they have bad scores. Better still, have them take and pass grueling exams covering all aspects of the constitution, and everything regarding the government. We'd get rid of 75% of those clowns.

Divedude: (November 04, 2010 2:06pm)

To deny an LO a license for fialure to meet a minimum credit score is discriminatory. And as always, it stinks of a well funded bank lobby. Call your newly elected congressman and ride their asses!!

wflanigan: (November 04, 2010 2:03pm)

On the Transunion Credit report if you read the terms of the credit report. Transunion will sell your information to third party providers. I wonder why no one has commented on this little item. I don't mind the pulling credit what I do mind is having my information sold across the US for credit cards I do not need and other items. The NWMLS should allow you to provide your own credit report.

john: (November 04, 2010 1:53pm)

Joe Parsons - Fannie & Freddie have not been poster children either ... see FNMA antics http://subprimelosses.com/fannie-mae-freddie-mac-timeline.php Freddie is no better...

NewParadigm: (November 04, 2010 1:42pm)

@JDrobeck - unwillingness and inability to pay credit obligations are two totally different things. Bad credit doesn't mean an unwillingness to pay (I have excellent credit btw). During the Option Arm epidemic, LOs that actually explained terms and refrained to originate toxic loans lost business due to greedy/stupid borrowers and deceptive/ignorant competitors. Bad service? I think the opposite.

JoeParsons: (November 04, 2010 1:13pm)

@dcessna: It is sad to see any potential public servant lose to someone like Rick Scott, who put $70 million of his own money into his gubernatorial campaign. We saw something similar here in California, but on a larger scale: Meg Whitman pumped close to $150 million of her considerable fortune into her unsuccessful bid for the Governor's office. She was an unlikely candidate, in that she has virtually no history of public involvment--in fact had not even bothered to cast a vote in any election until very recently. There are many wealthy dilletantes out there, unfortunately. Interestingly, Jerry Brown's total monthly campaign budget of $75,000 was what Ms. Whitman paid just ONE of her political consultants each month. (cue The Beatles, "Can't Buy Me Love")

NewParadigm: (November 04, 2010 1:11pm)

fyi - many, many companies are checking credit of their employment applicants. I never heard of them asking for a lox either. For all the unemployed (9.6% + millions of people seeking work but not counted because they no longer get unemployment checks + those not seeking work + self employed people who never counted but can't pay their bills), it seems crazy to check credit as a condition of employment in most cases. I heard Illinois began making it illegal. But if they're just checking LOs for fraudulent indications, that's not so bad. Good show. Hot topic.

JoeParsons: (November 04, 2010 1:06pm)

"The Big Short--Inside the Doomsday Machine" should be required reading for anyone who wants to discuss the mortgage crisis intelligently. Well written, entertaining, and a real eye-opener. Barney Frank does not in any way figure in the story. In my totally non-humble opinion, the real catalyst for today's problems was Senator Phil Gramm, who sponsored Gramm-Leach-Bliley in 1999. GLB effectively repealed Glass-Steagal (enacted in 1934), which prevented investment banks and from participating in the kinds of shenannigans that caused the meltdown.

dcessna: (November 04, 2010 12:58pm)

Well, our new Governor-elect in Florida was sanctioned with the heftiest fine for Medicare fraud assessed in history. After that, he face more fraud chardges for submitting falsified medical records to the state. I guess just as long as his credit is good, he's a credible public officer and we should trust him to manage our state. I guess any licensed mortgage broker that is denied the opportunity to continue their career because of a low credit score can ask our new Govenor how to make money in Health Care. Isn't it ironic?

Lee in Santa Rosa: (November 04, 2010 12:51pm)

Raypose, From the sound of your blood pressure, you too have read THE BIG SHORT. Those bastards, and Barney Frand, should all be in jail. Pass the Vasoleen.

Financial Revival Group: (November 04, 2010 12:46pm)

Don't worry about credit. At least in the long run. We are beginning to see the death of the credit scoring system. Over 30% of the population has a score under 620. That is the official statistic. We believe the number is higher and will soon exceed 50%. If you give a test to a class and over half fail, the test is not valid. As more people get upside down in their homes and decide to not play anymore the credit system will have to be re-vamped. We are not the only industry that has seen sweeping changes. The ripples of these changes will be felt for years to come in areas we may have not considered before. The credit scoring system is a natural extension. Don't look for immediate changes but in the years to come it is inevitable.

Pat Glenn: (November 04, 2010 12:39pm)

I'm glad you guys finally addressed this.. I have been trying to find some answers for months and nobody knows anything about how this whole new system is supposed to work. Wouldn't it make more sense to do the credit check first before making someone spend all that time and money passing the state and local exams, getting a background check, etc. I emailed a class action attorney here in Florida about this last week and they are looking into it. If any of you need any credit repair work done for yourselves or clients, contact ParkPlaceCreditRepair.com

mdeery: (November 04, 2010 11:29am)

This credit report qualification for NMLS is a joke. Did you know that over 40% of congress have a credit score below 500, have had numerous BK's, judgments, collections, tax evasion ,tax fraud etc etc. If they hold those bastards to the same standards as loan officers, then congress would look a lot different. Get your F*&*&+_NG head out of your ass regulators and Obama Admin and leave the god damn small business man alone with over regulation, so this country can grow again. Did you listen on Tuesday, yes they kicked your ass!

PropOneApprsl: (November 04, 2010 11:28am)

I have done work for an appraisal management company (privately owned)who owe me a substantial amount of money. In addition to our fees being grossly overdue, I have uncovered an unethical situation. Can anyone tell who the management companies answer to or who I may contact to report delinquent payment and or poor conduct? Thanks Rich

ssfranny: (November 04, 2010 11:22am)

Wow its absolutely idiotic they cant streamline the qualifications for getting licensed? In HI you can't have a foreclosure in 3 years or a BK in 10??? Are you freaking kidding me?? I can het a FHA 2 years after a BK & is discharged but not get a mortgage loan originator license. If I lived in MA and HI I would get every person together who got turned down due to these ridiculous requirements and file a class action. Since many lenders consider a short sale like a foreclosure. Man this whole thing is idiotic!!! Funny thing is in 15 years of being in the business who are the profesions where they have the worst credit??? Lawyers and politicians.

Lee in Santa Rosa: (November 04, 2010 11:05am)

Friends, Please learn about the Pacific Legal Foundation, if you don't already know of their good work. Please see: http://en.wikipedia.org/wiki/Pacific_Legal_Foundation Given a poster child who is denied a license, this would be just the kind of case they would take all the way to the supreme court. I've seen several others cases, involving hair dressers, florists and moving companies that they have championed over the past 35 years.

rayprose: (November 04, 2010 11:00am)

Lee, I get sarcasm. But the problem I have with this whole situation is that NO ONE is saying that the people that CREATED this whole situation should be responsible. I have heard of hundreds of Mortgage Brokers and Realtors having their lives turned upside down by the Feds looking for a scape goat yet......NONE yes thats ZERO of the financial masters of this whole mess have even been mentioned by the media as being responsible and that they should be brought up on CHARGES! WHY NOT??? Frank/Bryan?? Call for some big whigs HEADS!!

ssfranny: (November 04, 2010 10:44am)

I'm suprised some lawyer hasnt jumped all over this what other industry can a credit report prevent you from getting a job? Its discrimination plain and simple. Per the BK code you cant discriminate how can you with bad credit? Wait till the bankers have to do this as well then the MBA will step in...unless this is their plan get rid of all Os and pay some idiot by the hour. NMLS only needs to require criminal background check and testing THATS ALL

JML: (November 04, 2010 10:43am)

I would like to understand how we would be the only industry that has to qualify based on a credit report. Wouldn't it be just as critical to make sure lawmakers are "responsible" citizens. How about law enforcement officers, educators teaching our vulnerable children, doctors... Given the statistics of how many people now have sub 620 credit, I don't even want to think about the resulting unemployment (though cleaning out Washington might do some good). The good news is that in talking to CA DRE before paying my $1000 in fees, I was told they were looking for fraud more than bad credit. That gave me both hope and a battle plan. If I am denied based on credit, I feel I have legal grounds to fight it ('cuz it's ugly but there is no fraud), but I first have to play the rest of the NMLS game - pay their fees, take the test, and get my implanted cyber-device that can tell them when I go to the bathroom. (Oops - did I just open myself up to someone sending me the definition of cynical?)

ssfranny: (November 04, 2010 10:41am)

I'm in same situation in 2008 when housing market tanked and many got out I stayed and made very little money that year. I made a choice pay the mortgage on time or the credit cards. I decided to keep the mortgage and my car loan current and let the credit cards go late. By the time the market turned around in 2009 they were already in collection and damage was done. I could easily pass the test and pay for the classes but decided nto to since I didn't know if I would pass the credit report requirement since I was around a 600 score Experian. When I called and asked the state they said if I had derogatory credit I had to show I was in a payment plan on them. Or you can be 1 year out of a BK and it would be much easier to get re-licensed. What a f-in joke...losing many good LOs due to circumstances caused by market tanking in 2008. Also, theres going to be a lot of people who did all the testing before they filed a BK or did a short sale which are going to get bit now!!

bplo: (November 04, 2010 10:08am)

I also had perfect credit until 2008. My wife and I were both in the mortgage industry and both at the same company. We went from making really good money to qualifying for Welfare. Several LO's in my office including myself were given an intent to deny our license due to crdeit issues. My only option was to file BK because we had drained every penny of reserves we had to try and stay a float. Like others here, I have closed thousands of loans and never had a complaint. The Gov't should not have the right to take our career away due to unforseen circumstances that were beyond our control based off of a credit report. Good luck to you all. Keeping my license was a great deal of work, but I love what I do.

JJ320: (November 04, 2010 10:01am)

Also, keep in mind....if you work for a bank, you bypass NMLS rules....so if you can't make it in the "real world" of NMLS, go work for a bank! Corruption again at its finest.

JJ320: (November 04, 2010 9:58am)

I find it interested how the state wanted you to pass tests first, then pay all the fees and the very last thing is the credit report. Shouldn't that have been the first thing if that was a problem? I know of many loan officers that didn't even try to get their license for fear that they would spend the $1,000 by the time they were done and then get denied for credit.

Lee in Santa Rosa: (November 04, 2010 9:49am)

sar·casm (särkzm) n. Rayprose, may I offer the definition of sarcasm for your consideration. 1. A cutting, often ironic remark intended to wound. 2. A form of wit that is marked by the use of sarcastic language and is intended to make its victim the butt of contempt or ridicule. 3. The use of sarcasm. See Synonyms at wit1.

Lee in Santa Rosa: (November 04, 2010 9:48am)

sar·casm (särkzm) n. Rayprose, may I offer the definition of sarcasm for your consideration. 1. A cutting, often ironic remark intended to wound. 2. A form of wit that is marked by the use of sarcastic language and is intended to make its victim the butt of contempt or ridicule. 3. The use of sarcasm. See Synonyms at wit1.

john: (November 04, 2010 9:45am)

Why do they need another credit report?? I had to provide a credit report as part of my passing the NMLS process. What's up with that??

dcessna: (November 04, 2010 9:44am)

@Lee in Santa Rosa - I agree 110% please contact me about your private lending: [email protected] (813)957-4237

jdillingham: (November 04, 2010 9:43am)

Glad my report is ok. On one hand I don't see how having a good credit report is a good predictor of how good/honest a Loan Officer might be. So I think why bother. On the other hand as soon as rates tick up .5% from here we will have twice as many loan officers as we need until the real estate market comes back. So even though I don't think it is at all fair, I can see how making credit an issue would be to my benefit. When you work in an industry with high barriers to entry and you qualify, good for you.

rayprose: (November 04, 2010 9:41am)

Bryan/Frank, When you say the reason this occurred was a rating agency conspiracy, corrupt MERS, Corrupt Loan Officers, Greedy Realtors and Crooked Appraisers........WHERE DO YOU SEE YOURSELF FITTING IN THAT EQUATION??? How about the banks making a system where it was INEVITABLE that people would fudge on the truth. WHY DID YOU NOT MENTION THE REAL CULPRITS??? ..............THE BANKS!!!...............REALLY,,,,,REALLY,,,,CORRUPT REALTORS, CORRUPT LOAN OFFICERS...........HOW ABOUT CORRUPT BANK CEO'S AND CORRUPT CONGRESSMAN???.........You can't say that CAN YOU???? or Big Brother will come knocking!!

rayprose: (November 04, 2010 9:41am)

Bryan/Frank, When you say the reason this occurred was a rating agency conspiracy, corrupt MERS, Corrupt Loan Officers, Greedy Realtors and Crooked Appraisers........WHERE DO YOU SEE YOURSELF FITTING IN THAT EQUATION??? How about the banks making a system where it was INEVITABLE that people would fudge on the truth. WHY DID YOU NOT MENTION THE REAL CULPRITS??? ..............THE BANKS!!!...............REALLY,,,,,REALLY,,,,CORRUPT REALTORS, CORRUPT LOAN OFFICERS...........HOW ABOUT CORRUPT BANK CEO'S AND CORRUPT CONGRESSMAN???.........You can't say that CAN YOU???? or Big Brother will come knocking!!

rayprose: (November 04, 2010 9:40am)

Bryan/Frank, When you say the reason this occurred was a rating agency conspiracy, corrupt MERS, Corrupt Loan Officers, Greedy Realtors and Crooked Appraisers........WHERE DO YOU SEE YOURSELF FITTING IN THAT EQUATION??? How about the banks making a system where it was INEVITABLE that people would fudge on the truth. WHY DID YOU NOT MENTION THE REAL CULPRITS??? ..............THE BANKS!!!...............REALLY,,,,,REALLY,,,,CORRUPT REALTORS, CORRUPT LOAN OFFICERS...........HOW ABOUT CORRUPT BANK CEO'S AND CORRUPT CONGRESSMAN???.........You can't say that CAN YOU???? or Big Brother will come knocking!!

Beach2BayRealEstate: (November 04, 2010 9:39am)

My husband and I were more worried about the credit check than the testing. I feel a little bit better now, thanks to the video. Makes sense and I hope you're right.

JULIANNA: (November 04, 2010 9:37am)

I wonder if it it legal to be denied licensing for credit issues, not related to fraud.It seems we are at the hands of the states, and I wonder if those people that are judging us have their credit reports pull.Mortgage brokers are the only ones that have to have a perfect credit report in the nation.

Lee in Santa Rosa: (November 04, 2010 9:37am)

I think practically all of you are missing the point. By what right does the government have the ability to make any professional submit a credit report for arbitrary evaluation. We all know credit scores are a scam in themselves. And what about the audited net worth requirement for brokers? Has that changed? Or is it still $250,000 in CA? I know of no other trade or profession that has these types of requirements. Has anyone thought of contacting the Pacific Legal Foundation? They love to take on these types of cases in the protection of our liberty. Fortunately, 90% of my business is private money commercial lending. We said "Hell No" and stopped making owner occ home loans completely. Too bad for these customers, because we had very low private money rates for an underserved segment of the market. Wake-up people. This is not about your little credit issues. It's about an out of control Progressive government over-reaching into your personal life and restraint of trade.

Carnivore: (November 04, 2010 9:35am)

Thanks MBA Realtor.I too am dealing with MI for 5 weeks providing all kinds of explanations on some credit issues from four years ago. Perfect credit prior to then and no problems since. Over 2000 loans closed in 23 years and never a complaint from a client. I think they're just trying to weed us out. Looks like I might have to be a banker.

dcessna: (November 04, 2010 9:27am)

Interesting article just came through on my ticker: http://www.housingwire.com/2010/11/03/fha-insured-mortgages-may-be-under-review-for-foreclosure-process hmmm, "sanction, suspend or even terminate lenders and servicers that are found to have erred during a foreclosure on a FHA-insured mortgage" Wow, the "too big to fail" biggest banks in the nation could lose FHA lending? Who's going to fill that void and how????

JoeParsons: (November 04, 2010 9:26am)

@5pence: We may disagree on some things, but that last comment was priceless. Nicely put, sir!

Appraiser Micro: (November 04, 2010 9:24am)

No credit can be good credit...

MBARealtor: (November 04, 2010 9:14am)

You can pass your state & national exams with perfect scores, but it does not automatically mean you excel as an LO. Your credit scores mean nothing to me, if you do your job well as an LO. I am a licensed real estate broker for 14 years. I have closed over 1000 transactions, with half of those transactions involving a licensed mortgage broker. Most of the LO's/mortgage brokers I have worked with were very professional and did excellent work. I never once asked them what their credit scores were, because credit scores had absolutely NOTHING to do with their job! I know that alot of good, competent LO's will likely not secure licensure, and that will be a shame. You can have excellent credit scores, but if you are a lousy LO or you are an arrogant SOB like some on here you think theyre better than everyone else because of their stellar credit scores, I will simply choose not to work with you. My clients follow my advice. Good credit scores for LO's does not translate into competent LO's

ssaba: (November 04, 2010 9:05am)

nicely put, Spence!

5pence: (November 04, 2010 8:58am)

Interesting, they're expecting only saints to work for sinners.

PAUL WILLINGHAM: (November 04, 2010 8:58am)

My credit was in the tank when I got my NMKS license in April. BTW I aced both the state and national exams and finished them both in less than an hour. Hey if I don't pat my back it won't get patted. Anyway I did have to send a lengthy explaination with documentation to the CA DOC.But ultimately they said I was okay. Since then I have file BK and just sent the CA DOC all that stuff. I anticipate that I will be okay since the Bk was based upon the same conditions that the CA DOC gave me a pass on in April.

ricky7777: (November 04, 2010 8:51am)

I am worried about the credit report requirement here in TX though I've passed all other aspects of NMLS. Last Jan I had a 748 score, then had 3 straight months with ZERO closings. It's hard to manage your money with zero income. And my savings in the stock market had already been decimated and I got divorced in 2008 so no dual income for me! I've spent all year just trying to catch up and have several 60 and 90 day lates and a 500 score now. I do NOT want to declare BK. But it's hard to commit to payment plans with creditors to get current when you're scared the well could run dry again anytime. Also, many of our loan amounts are under $100k where we are - maybe the judgemental types on here are luckier and live in areas where they consistently do million dollar loans. I feel like I am being persecuted though I'm trying my best to catch up. I'm about fed up with all this. The fact that having a bad year can keep me from being employed is ridiculous.

ssaba: (November 04, 2010 8:50am)

this is a class action lawsuit waiting to happen..And please...$15 for a "soft pull" from one bureau? Should ALL individuals in the financial industry be subjected to this kind of scrutiny? OH WAIT..how silly of me..I FORGOT that LO'S are responsible for the downfall of the housing industry and the economy!!!!

Daggone: (November 04, 2010 8:41am)

JDrobeck - in a perfect world you are right. We do not live in a perfect world. These are unprecedented times. I would have agreed with you 2 yrs ago. You are wrong today. I have a Realtor friend who filed b/r because she just doesn't want to spend her money that way. Yet, she can advise ppl about housing and financing. Really? And we all know most of the worst are at the banks working now. I'm not saying you can be a credit criminal; I just think it needs to be reasonable. BTW I stay in touch monthly with my past customers; I have all repeat or referral business. There are still fewer doable deals out there.

JoeParsons: (November 04, 2010 8:41am)

I find the smug, sanctimonious tone of a few of these posts to be really unfortunate. A damaged credit report is the result of poor customer service? Give me a break. Not all mortgage originators provide financial advice beyond filling out a loan app; and many who DO provide financial advice are spectacularly unqualified to do so. The credit criteria being inflicted on independent mortgage originators are not being equally applied to stockbrokers, realtors, financial planners, insurance salespeople or LOs working for banks. One of the most unfair aspects of the process, apart from its arbitrary nature, is that no one really knows what the criteria are--but the hopeful mortgage professional must spend in some cases thousands of dollars to go through the training, testing and registration process, only to be told at the last minute that he doesn't qualify and can no longer work in the field. I personally am not concerned about my future, but I know many who are--and it stinks.

Zach: (November 04, 2010 8:24am)

At JDrobeck and others: So let's say you're an LO, you have great credit. Now the market fails, your wife gets cancer...your credit goes to crap. So you should not be able to get licensed? It's not black and white. FWIW, I have good credit. I've seen many many good people go down because of this thing. One of my most conservative of all friends (doesn't even own a car, uses public transportation, makes $150k a year and lives in a 900 sq ft condo) had some bad luck. Had to declare BK because of unforeseen and unavoidable circumstances...now he can't work in the field he's an expert in...that's great. Doctors, lawyers, police officers and politicians have some horrible credit..loose their jobs too? And I agree, doctors aren't the picture of health...fire the if they have high blood pressure? I can only assume the people standing on their soap box haven't had a REAL life "experience" yet. Or they're just naive and ignorant.

JDrobeck: (November 04, 2010 8:19am)

jaygee, the thing is. There is still lots of business out there and if those lo's would have built a referral based business, kept in touch with their database, and provided outstanding service. Then they would receive more referrals as the lo population declined and even though guidelines tightened the would still close loans because they would get more referrals. It a numbers game today just like its always been. I guess the bottom line is that (and this would be a good poll to put on this site)I agree with the Feds. if you cant manage your own money, you shouldn't be giving advice to people on how to manage theirs. I'm not saying every little collection should be paid, but they should look for complete unwillingness to meet the commitments people made to their creditors. This goes back to the whole mortgage adviser job description and additionally people struggling financially tend to take advantage of the consumer more so than someone who is not struggling.

ehilliard: (November 04, 2010 8:14am)

Yeah, these other LO's need us to fail and fall out because they don't have the ABILITY to work hard and establish a following of Realtors and investors, so they need us to leave so they can soak up the business. "judge not, lest ye be judge!"

celloshred: (November 04, 2010 8:14am)

Having bad credit, late pays, collections, i.e. not managing your own finances does NOT mean you cannot advise clients on their own affairs. Are all Doctors healthy? (I dated the daughter of a top heart surgeon in TX, he was a smoker). Can all track coaches run a 4 minute mile? Has an attorney ever lied?

bplo: (November 04, 2010 8:13am)

In Georgia, your credit report is a BIG DEAL. You have to have caught up all past due accounts or at least worked out a payemnt plan and made three payments. If you have had a foreclosure or a repo and the bank is unwilling to work out anything with you....you WILL loose your license. The only option is file a BK or catch up all past due accounts. This is a fact.

Bono Vox: (November 04, 2010 8:11am)

The pay issue will be interesting. How are wholesalers going to protect themselves against brokers who make bad decisions, ie trying to take YSP and a point? I'm guessing every wholesaler's attorney gives them a different SOP to follow, driving brokers both insane and into the arms of the big three and Ringo. Not that this was the plan when the whole comp thing was dictated to...errrrr.... created by Timmy and Benjy.

Bono Vox: (November 04, 2010 8:09am)

Lots of discussion today. I've done well and maintained my 700+ scores, buy I don't begrudge someone who took a foreclosure, or just got behind on bills, their right to do business. What is the correlation % for bad LO credit = fraud, bad service, bad guy? I left self righteousness behind with my youth.

Zach: (November 04, 2010 8:07am)

I LOVE the holier than thou attitude. Those people are generally the most insecure and fall the hardest. I've been at both ends, wealthy and not-so-wealthy. I can tell you from experience...we're ALL human. Those people bashing others will get theirs...sometimes bad things happen to good people. Do you laugh at cancer victims too? Oh well, karma is a b*tch.

jaygee: (November 04, 2010 8:06am)

Could "JDrobeck" post a more clueless statement? So any LO who experienced a financial hardship was guilty of providing poor customer service? With over 10% unemployment, surely there could've been a few LO's who dropped from a dual income family to a single income family. That single income mind you, now came from an LO...trapped in an industry where few who needed loans could actually qualify...which resulted in a reduction of income. Thank you JDrobeck for enlightening me that all financial hardships are a direct result of providing poor customer service. You are a true genius and a "credit" to your profession.

MTGTEAM: (November 04, 2010 8:02am)

You know it really sickens me to see such judgmental, aroggant, better than everyone else on here. There are a lot of good Lo`s out there with bad credit because of circumstances beyoud there control. That is the problem with society, business owners in general. You dont give anyone a chance. I have been in business for over 30 years and I will tell you, some of the best, hardest working, most loyal people I ever hired were down on there luck. I reached out to them when no one else would. Like some of you on here "Swarm the Banks" for instance, you are all for yourself. You think you have everything and you dont owe anyone nothing. You are so quick to judge. Get off your asses and help these people, give them a chance. Create in them want you would want in an employee. Create a friend and watch how loyal, honest and hard working they become. using credit to determine ones employment is foolish.

JDrobeck: (November 04, 2010 7:42am)

Bye Bye LO's with crap credit. Good ridens, more loans & more money for those of us that didn't get in over our heads and were smart enough to provide outstanding customer service back in the day and therefor are still closing lots of loans today! The state of MI already ran credit reports. I know of one LO that had 1 collection from a book club for 30 bucks and had to pay it off!

dcessna: (November 04, 2010 7:20am)

Of course any financial professional that is trusted with the sensitive details of a consumers finances should be financially responsible themselves and meet a lot more criteria than bank employees currently do. The real story is not about the ineffective new licensing requirements, its about how inexperienced, low caliber, financially irresponsible employees of banks are not background checked in any way. The fact is that we all know how licensed Brokers have been systematically attacked by the Bank Lobby to eliminate their competition and more dangerously, get rid of knowledgable consumer advocates. Think about how much of a scam it is to get all of us struggling licensed professionals to pay the additional fees for registration, testing and background testing and then be told that because of a low credit score, you lose! You must pay them to be able to work, after you pay them, they disqualify you from being able to work anyway. That sounds about right.

deblakeley: (November 04, 2010 7:11am)

Including this, I am still miffed that bankers get a free ride from all the NMLS requirements. I was naively under the impression that laws were supposed to be enforced equally. Glad I have high and good scores, I know some guys who will drop out on this issue.

Zach: (November 04, 2010 7:08am)

I sometimes why any of us continue taking this much punishment, lol. Really though, I know life can be hard but this is just ridiculous how much we're fighting against the grain. I think some people believe if we jump through enough hoops...it's all going to get better. I don't think that's the case at all. This credit report thing is just silly. How can their be double digit unemployment rates, tens of thousands of foreclosures, a decimated housing market and people not have bad credit? Some of the state requirements are NO lates at all...lol. No bankruptcies for TEN years? Bwhahaha. You know what's even funnier? I personally know a CONVICTED felon child molester (15+ years ago) who is a licensed LO because he has good credit. There's some irony for ya...diddle kids? FINE. 1 X 30 on a car payment, DENIED. Screw this industry. I'm not trying to be negative but day after day after day of an uphill battle. I can go make 6 figures in some other sales...or even real estate

roy7: (November 04, 2010 7:07am)

Hopefully I don't get declined, since I've spent over $550 for licesure in Florida already. A friend got her series 7 investment license in spite of multiple foreclosures. Could it really be harder to be a mortgage broker than an investment advisor?

Daggone: (November 04, 2010 7:01am)

Godlike - do you expect taxes to be fair? And btw the single ppl in this country pay way more than married and always have. Would be nice to get a break. We need to get rid of income tax and make it a consumption tax, then it will be fair.

John's Texas: (November 04, 2010 6:59am)

My company, wholesale, has drawn the line at 620. We have had a few shops drop off but as you have observed the pickin’s are a bit slim out here. ?? where can we get updated list, state per state, of the survivors. The NMLS web site doesn’t have the capabilities of a mass download. Or does it?. Let me know. “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the most adaptable to change.” Charles Darwin Good web cast with White yesterday around noon . Sorry I skipped out half way through, work called. BUT I have purchased my tickets for the Dallas/Richardson Texas session coming in December 9 – 11th “All Good”

Daggone: (November 04, 2010 6:57am)

I'm about to begin the process of wasting a week of my time to get my licenses on NMLS for renewal. The most convoluted software that could be imagined! If that is no annoying enough, now I'm spending $4000 a year to get licensed vs $2000. I would think you are correct in saying most L O's have lower credit scores, because of the lack of business in general and HVCC wreaking havoc on values. I have a lender starting to set up their own in house appraisers, but guess what! They have to use appraisers already signed up with the AMC's they will no longer use. Their footprint, however, can use the appraisers the bank likes. I find this appalling.

MBARealtor: (November 04, 2010 6:47am)

Using personal credit reports as a basis for licensure qualification is completely unfair. The housing crisis coupled with an overreaction by government regulators has made the mortgage industry a shell of what it once was. If you dessimate an industry you have to expect financial issues by those closest to that industry. I have been licensed as a mortgage broker in Florida since 1993. I worked with alot of good people in the mortgage broker industry who did right by their customers. Perhaps if the elimination of the 'bricks and mortar' requirement for originating loans in Floirida had not been lifted, the crisis could have been lesser. Doctors, lawyers, nurses, engineers, teachers and other professions have been negatively affected by this crisis; you don't see regulators going after their profession for bad credit! Licensing in Florida was too easy for most to qualify for licensure, often cheapening a worthy industry. Good qualified LO's should not be judged by credit alone.

tbwbrian: (November 04, 2010 6:35am)

I Hope not Godlike but if we hear something we'll let you know. Likewise if you hear something. Share the love.

tbwbrian: (November 04, 2010 6:34am)

I forgot to bring up one very important point about NMLS licensing. Your licenses are coming in January but you can hold off on your credit report check until after the new year. It seems if credit reports were going to be a big deal, they would have required them getting pulled prior to incensing.

GODLIKE: (November 04, 2010 6:32am)

A customer's accountant just told her that the tax rates are changing and in 2011 Married Couples will owe more in tax than unmarried couples. That's just the reverse of what it's always been. Any truth in that rumour?

tbwbrian: (November 04, 2010 6:31am)

Hi Swarm the Banks. Not at all. Its not ok, in fact it stinks. Not only have loan officers had their income drop due to the nature of our biz, but congress has actively legislated against their very existence. Further, a bad credit report is not going to threaten the livelihood of a Realtor, Wal-Mart Employee, a doctor, baker or candlestick maker. But bad credit reports through NMLS could very well sink the ship of thousands of families that rely on L/O income. Seems a bit much to me.

Swarm The Banks: (November 04, 2010 6:22am)

I just want to see if I understand this correctly. The people involved with financial paperwork for home sales, loans and ownership have bad credit, but thats ok because most of these people have bad credit, but homeowners lured into more home than they could afford caused the mortgage meltdown. A classic "watch where I'm going" meme from loan services to the homeowner.

DanSchweihs: (November 04, 2010 6:18am)

Luckily, LOs at banks don’t need an NMLS license. LOs with credit problems can continue to get a job at a bank. The banks needed to eliminate the low cost player in the market. This continues to be the independent mortgage firm. The banks have done a great job eliminating their competition; A poor job of loan mods, and foreclosures, but a great job of having Uncle Sam eliminating their competition. The banks cannot maintain their high cost offices, levels of management, expensive advertising, etc. without help from Uncle Sam. Uncle Sam has agreed to protect the consumer by eliminating the low cost firms? But it sounds good when they say it fast.

alex.samant: (November 04, 2010 6:18am)

I'm not taking any chances with my license... The FAMP Miami chapter is working to improve all mortgage professionals credit reports for free. http://www.fampmiami.org/

scott.rheinhart: (November 04, 2010 6:16am)

The NMLS requirements should be applied to all politicans that run for office. A national and state test on government policy and procedures, a criminal back ground check and of course the credit check. If you cannot manage your own debt what business do you have managing the country's debt. I would be willing to help write the test

marksman: (November 04, 2010 6:11am)

Check out the laws in MA. If you are 1x90, 2x60 or 3x30 on just about anything or are in any stage of foreclosure or within 3 years of a foreclosure being completed, you cannot get a license in MA. I suspect not all of the examiners in that state could pass that test.

ehilliard: (November 04, 2010 6:10am)

TD Hawk, "What? Are you kidding me!" Get down from your "holier than thou!" soap box! I was a manager for THE Largest Wholesale Lender and it one swoop, they made me fire 15 of the 22 AE's I had working for me. They did nothing to be fired, and once the wave started is swallowed up the industry. I can say that only 2 of the 22 are still the Financial Business and maybe four kept there homes! None, I repeat, NON had bought a home during the RUSH days, they were AE's that had been in the business for 5+ years before joining me. So don't act like there were a bunch of idiots that, got quick money, bought cars and homes way above there means! These ARE good people who were LAID OFF and couldn't find a job, any job, hell Target or HomeDepot wouldn't hire me and I was a mechanic for 4 years for christ sake.

loannetter: (November 04, 2010 6:07am)

Do the questions we are being asked to keep our jobs equate to employment discrimation? For example, an employer is not allowed to ask your age; yet every form we fill out requires date of birth. I question the legality of having your credit report become a job requirement as this could be considered invasion of privacy.

Gnotboxchecker: (November 04, 2010 5:56am)

Okay... What law gave the Feds the right to run a credit report? Does the requesting agency have a mandate to share the results with the hapless target of the inquiry, the loan officer?

TD Hawk: (November 04, 2010 5:52am)

If you cannot manage your own debts, what business do you have advising others about theirs? Aside from medical hardship or nasty divorce (same standards for borrowers), I can't see any excuses.

Old School Mortgage Banker: (November 04, 2010 5:42am)

Guess I'm one of the lucky ones. NMLS has already run and cleared my credit check for renewal. Frankly, I'd like to be one of the only 5 LOs in the country, it might make my phone ring a little more often than it does now!

rweiss5871: (November 04, 2010 5:37am)

so, you made me feel like less of a looser now that I know other LO's are in the same situation as me. Maybe if the feds and state didnt require all the fees and gas $ to drive 4 hours away to take the tests and classes I wouldnt have missed a payment of 2!!!!!

frankgaray: (November 04, 2010 3:18am)

Just talking to some industry peeps about it. Hopefully they're right. The tone we were getting from them is that they're looking to weed out the bad guys that have done naughty things, not so much the guy that got beat up in the market. This is the feel from most states, however each state has it's own rules. Still, they would be shooting themselves in the foot if the canned every single LO that has some credit issues.

hmci: (November 04, 2010 2:27am)

In Hawaii it is pretty clear what the requirements are for credit: No foreclosure in past 3 years, no BK in last 10 years, no ongoing 60 & 90 day lates in past 3 years. Medical collections are not counted. There are no exceptions. Lucky I have 750+ credit.

GODLIKE: (November 03, 2010 7:47pm)

What is the source of your info on this credit issue? My credit scores are still very high, but I've had fears that an illness or other catastrophic issue at some time could put me out of the business so is this your speculation or is there a written something out there that would allow me to sleep at night?