HUD Swings NMLS Bat at LO's - 01.12.10
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Nuke 'em Until They Glow and Shoot them In the Dark: (January 21, 2011 7:50am)
Hmmm Isn't Lennar one of the biggest Proponents of Violating RESPA and Steering Borrowers to their "Preferred" lender that is owned by them and not to mention they commit Fraud like they are breathing. If I did 1/1000th of what they'd do I'd have My license revoked! The Fed shouldn't be worrying about Reg Z comp they should be enforcing the existing laws! And stop builders from Screwing Consumers.
GODLIKE: (January 12, 2011 7:12pm)
Here's the link to take you to these Conditional Approval letters and some other forms. http://tinyurl.com/4qxxxyy
GODLIKE: (January 12, 2011 7:11pm)
In the state of Texas there are 2 promulgated letters that can be issued by Brokers. The first one is a simple Pre-Qual and says that you don't have a loan app and you haven't really gotten all the person's data. The second one is a full Pre Approval letter that says you have the loan app and the docs. Most builder's banks require the 2nd letter before they'll lend the interim money. We do this all the time.
katie: (January 12, 2011 2:44pm)
John Walker!! Send me your address if you want your book! [email protected]
GODLIKE: (January 12, 2011 11:58am)
On the FNMA/FHLMC hits, we're told by our wholesalers that there's a hit for subordinate financing. You get hit .75% if you have subordinate financing.
JoeParsons: (January 12, 2011 11:44am)
@doitright: I don't know where you are getting your information, but as a broker, I *absolutely* can issue a preapproval. I can also lock a rate with any lender, and that rate lock constitutes a contract between the lender and the borrower. With respect to the training and licensing of LOs: yes, a banker is operating under the bank's number and license (assuming we are talking about a Federally chartered bank, which is exempt from most of the NMLS regs). The point others are making is that there is no requirement for those bankers regarding background, credit or, for that matter, education and competence. If the bank is willing to hire someone as a loan originator, *they* decide where to set the bar, not the regulators. The fundamental unfairness of that fact is what people take issue with, I believe. I know I do--and I am speaking as someone who has been a loan originator for over two decades, and who has jumped through all those hoops mandated by SAFE Act and NMLS.
loppy: (January 12, 2011 10:53am)
We now have the finest, most expensive method of delivering the lowest quality of loan programs to the smallest number of overqualified individuals. We're NUMBER 1!
ssfranny: (January 12, 2011 10:48am)
why isnt NAMB filing a class action discrimination lawsuit against NMLS for differing rules for loan officers? On top of the making a credit report a requirement for employment. National Assoc of Home Builders sued HUD over Section 8/required use where they can have in house lenders and won. I was told by someone at HUD thats why they dont enforce it. Bachmann has it right repeal Finreg especially one written by crooks Dodd and Frank who got us into mess in mid 2000s. Thats like having Bernie Madoff write SEC laws.
Utah Mortgage&Real Estate Guy: (January 12, 2011 10:41am)
To those bankers arguing the approval process and pre-locking a loan.I am licensed in 39 states. There are a few states that have parameters about pre-locking a loan before it has been underwriten.Everyone of these states ALLOW a mortgage broker to pre-lock a file at application AS LONG AS THE BROKER HAS AT MINIMUM:income documentation (4506-T takes less than 3 mintues to order) and an automated underwriting approval (DU/LP), which if the loan officer knows what they are doing, takes less than 10 minutes.I have no idea where you bankers are getting your information; oh that's right;the only information or education you recieve is that which your employer gives to you.No matter how offbase it may be. Let's refer back to the continuing education, testing, licensing that the Bank Loan officers don't need to do. As a Broker, we are on the front line of every guideline change, program change, industry regulation, and education requirements.
Utah Mortgage&Real Estate Guy: (January 12, 2011 10:33am)
I am unsure where all the rumors of hostility are coming from about brokers not liking bankers. I love bankers and I am a broker. I love them because I know for 100% that they cannot compete with the products, rates, costs that I can offer as a Wholesale Mortgage Broker. Last year alone, I closed over 40 transactions simply because the borrower contacted a BANK first and was astounded by their fees and rates, so then I recieved a call. That does say that I need to do a little more to keep in touch with all past clients and reiterate referrals are welcomed with this client base. Please, LO's that are struggling, go get a job at a bank, let your NMLS license lapse, forget about continuing education, or taking any tests, etc, etc. All of us mortgage brokers will thank you. I have give every client three TBTF banks customer service numbers when I first meet with this client. They get quotes from at least one (if not all three) and it makes me look that much better.
Mike8307: (January 12, 2011 10:28am)
Once again a double standard between Bank LO's and brokers (now know as LO's). Why the double standard? Who do you think wrote the legislation? Do you think either Barney Frank or Chris Dodd is smart enough to write a bill? ROFL When this country realizes that legislation is written by those who the legislation is supposed to be regulating in the first place we'll all be better off. the inmates are running the asylum.
Utah Mortgage&Real Estate Guy: (January 12, 2011 10:27am)
The reason the bank loan officers with a NMLS number show up as expired is because they are not listed or SPONSORED by a participating Mortgage Company. The license MAY show expired, but if that Loan Officer chooses to move to a participating Mortgage Entity and that Entity requests sponsorship, then the Loan Officers License and NMLS# will show active, but not until then. A bank LO with a NMLS# will show inactive because the federally licensed bank they are working for is NOT PARTICIPATING with the NMLS.
ssfranny: (January 12, 2011 9:44am)
whole NMLS thing is a big joke we all know it was pusshed by bankers and mortgage banker to push brokers out of business. Well that and it was a big money grab by the corrupt politicians to bleed the brokers with fees. Funny how banks think they dont have to worry about it just like GFE2010 with indirect compensation. We'll see how many bank LOs are still working in business when they get their pat dramatically reduced by not getting both YSP and SRP. 98% of borrowers and most realtors have no clue what NMLS is. What I think is total BS is that they have set deadlines to get testing and fees paid and THEN pull credit report later. Now I know of people losing it due to mortgage or other lates they shoulg get money back or file a lawsuit for NMLS not having their crap together.
kim: (January 12, 2011 9:41am)
That is true about larger banks like Wells Fargo. The person who takes the application is nothing more than a paper collector. They pass everything onto someone you never see, and due to this, the process is extremely long. I love using Wells Fargo because the pricing I can get is better than most of the other banks, but I can't close a loan in 30 days. Too many hands on the file and I have found in my experience with them that they don't even talk to each other. Paper work ends up missing and it takes them weeks to let you know to send it in again. It is too impersonal and long of a process with no guarantees that you even have an approval until the inspection period is over and the appraisal has been done. That is just ridiculous. I have much more control of the loan process and the borrower's money being spent being a loan broker. I actually talk to the underwriters and can get a credit approval before the client finds a house and spends any time or money.
ATLMTGMAN: (January 12, 2011 9:35am)
MARK, DOITRIGHT; I was a broker for 6 years with 13 different state licenses. Keeping up with them plus the cost became a full time job in it self.I decided to move to a banking platform to get away from all the licensing requirements, but it does'nt mean I agree with it. It was a personal choice. To level the playing field, I'd like to see a more stringent licensing requirement for ALL originators something along the lines of a series 7 designed for originators and eliminate the individual state requirements, but that won't happen because the states would stand to lose too much revenue in the form of licensing fees. There has to be a way to level the playing field. If stock brokers, insurance agents, realtors ALL have to be individually licensed regardless who they work, why not us? Are we professionals or just a commodity????
ATLMTGMAN: (January 12, 2011 9:34am)
MARK, DOITRIGHT; I was a broker for 6 years with 13 different state licenses. Keeping up with them plus the cost became a full time job in it self.I decided to move to a banking platform to get away from all the licensing requirements, but it does'nt mean I agree with it. It was a personal choice. To level the playing field, I'd like to see a more stringent licensing requirement for ALL originators something along the lines of a series 7 designed for originators and eliminate the individual state requirements, but that won't happen because the states would stand to lose too much revenue in the form of licensing fees. There has to be a way to level the playing field. If stock brokers, insurance agents, realtors ALL have to be individually licensed regardless who they work, why not us? Are professionals or just a commodity????
imnosaj: (January 12, 2011 9:30am)
I was a broker and now am a banker (Fed. Charter),due to a merger w/ one of our investors we used as brokers. I wanted some other input to this, to make sure what we are doing is actually right. I firmly believe what’s good for the goose is good for the gander. I’m listed in the NMLS and passed ALL of the tests needed to function as a broker if I decide to go back. I hope the Brokers Assn. fights this tooth & nail & we all have to play by the same rules @ some point. I can tell you from experience on the "other side" if some of the bankers had to go through what I did, there is NO WAY they would be originating now. Some of the incompetence on the banker side of this business never ceases to amaze me. Imagine if only ½ of the realtors had to be licensed or ½ of your investment advisors. Would this seem fair? Would you do business w/ someone that wasn’t licensed ? I hope this goes viral to the realtors, and any banker that’s not listed or licensed Lose deals to those of us that are.
MikeH: (January 12, 2011 9:21am)
To the unregistered "bank" employee... the difference you refer to is a warehouse line... which is like having a credit card... to draw down and close a loan... How does that help when you don't have the education within your field to pass a simple license test or background check? ... A telemarketer within a bank is still a telemarketer... All talk and no substance ... . Most bank L.O.'s are told to stay away after the application is taken... Grow up...
Appraiser Micro: (January 12, 2011 8:57am)
Nice NMLS link - went right into favorites.
Daggone: (January 12, 2011 8:55am)
mark - you have made me laugh till I cried this morning! I could use your sense of humor all day every day. Sadly, it does reflect the situation most of us are in these days.
GODLIKE: (January 12, 2011 8:48am)
Ahhh I see you're being tongue in cheek. They ARE up to their old tricks.
GODLIKE: (January 12, 2011 8:46am)
I haven't watched the video yet, but I'm presuming it has some sort of positive rah rah about Lennar. We're talking the same Lennar Homes that the owners lost the whole roofs during a hurricane and under subsequent investigation it was found they were paying off inspectors so they could use sub standard materials and workmanship? The same Lennar Homes/Lending that would have rather lost a sale than allow a buyer to go to an outside lender even if they had been turned down by Lennar because Lennar wanted to close when the house was "substantially complete" not actually complete so they could make more money on the home because they wouldn't honor their warranties? Is this the same Lennar you're talking about as apparently some sore of fine example? Now I'll watch the video.
kim: (January 12, 2011 8:46am)
I can't speak for other states and don't know if it is universal, but I do know that it is harder to get hired at some banks due to them not hiring if you have ANY bad credit. Right now our state NMLS is showing much grace with what is going on in the market with accepting loan officers that went through some really hard financial situations, even BK's and foreclosures with explanation. Your credit report needs to reflect good credit prior to the crisis though. But it is true the bank loan officers are not required to be educated on the level we are and there is no accountability to prove they have been through the banks. I actually can offer better interest rates than most of them and have been able to close much sooner. Most banks send the loan files to a main processing center usually out of state and the turn times are horrible. If you want to close a loan in a timely fashion, and have more loan options, Mortgage brokers is the way to go. Maybe this is different with some banks
mark: (January 12, 2011 8:42am)
bucco - I dont have a vault I just have a shoe box for deposits. I think my ATM is the microwave - at least it beeps when the buttons are pressed. I agree with you!!
PinkiePinkerton: (January 12, 2011 8:34am)
Hey Frank and Brian: first time, long time. I have to point of that if your place of living is subject to property taxes that you are currently living in government housing. It doesn't take a loan to make that happen.
bucco: (January 12, 2011 8:33am)
@DOITRIGHT They may hold the "bank" to a higher standard, but not the l.o. Yes, the bank Hired you and expect you to do the right thing. Well a broker/owner hires employees and expects them to do the right thing too. We may not have the FDIC in our office for pastries once a month, but you know what we do have? Everyone of our fricken end lenders, ( banks just like you,) who critique our loans into oblivion, because they too have the government peeking over their shoulder, just like at your bank. So we get hit with the extra bs and the "bank " bs. Oh and you can come to my house an do your banking in my basement if you want. I have a walk in vault, other than high priced buildings and free coffee that is the only difference between my basement and your bank.
Daggone: (January 12, 2011 8:32am)
doitright BWAAHHHHHHHHHHHHHHHHAAAAAAAAAAAAAAAAA You left out the part about how you can walk into the u/w's office and call the appraiser give him the number you are looking for on the value. And, in my market I'm going to beat your service and rate over and over again. Can't wait for comp rules to go in place for EVERYONE!
gregwhitmire: (January 12, 2011 8:29am)
I think the one misconception between brokers and bankers is what is required. I used to be a broker, which required nothing but an application to be hired and work under my brokers license (old rule in AZ). When I became a banker, I had to have a credit report ran, FBI fingerprints done and a background check done when I was hired. This was back in August of 2005. Every year since then, I have compliance classes that have had to be taken concerning ECOA, Fair Credit, RESPA, HVCC (since its inception), Anti-money laundering, just to name a few, every year. I know bankers that do not have a clue and I know brokers who do not have a clue.
mark: (January 12, 2011 8:27am)
Firstwest - I agree with you. Doitright - I still dont agree with you. I can lock in a rate with any investor without any underwriting approval. My Conv source underwrited in under 3 hours and clears conditions in under 30 minutes. FHA - I can get underwritten in 24 hours through several sources. My rate lock is guaranteed and I can provide the proof. Directly from the SAFE ACT "Mortgage loan originators who work for an insured depository or its owned or controlled subsidiary that is regulated by a federal banking agency, or for an institution regulated by the Farm Credit Administration, are registered". What I have an issue with is the INDIVIDUAL requirements. Why do I have to do everything( ed, fbi check, cr check, fingerprins etc) when YOU as an INDIVIDUAL do not? I could care less about the FED as that is at a corporate level. I want equal treatment as an individual.
Seabolt: (January 12, 2011 8:21am)
Oh how I love that "lived in home" feeling! - https://www.seaboltmortgage.com
doitright: (January 12, 2011 8:11am)
Hello Firstwest I was not going to respond but just want to get the record straight , you mentioned being held to a higher standard? Trust me the government does not hold you to a higher standard . It is the opposite , they hold the banker to the highest degree of scrutinizing . The reason we as bankers don't need a separate number is we work under the banks our employer , who trusts us to represent them as they hired us to . Now did you know we have Fed officials that come in every month and check on compliance and closed loans . Plus my employer is held under much stricter guidelines then a simple test and finger printing . If we mess up they can close us down . The banks have very high standards , and I have been both a broker and banker. Do you have FED bankers visiting you every month checking everything for compliance ? We do , we are at much higher standards then a broker. Heck you can be a broker from a basement , it is night and day . If you don't believe try applyi
lakers: (January 12, 2011 8:02am)
sorry, can't find where to register for the compensation panel tomorrow.
Sherry W: (January 12, 2011 7:52am)
In FL - Unless you are approved and been issued a NMLS MLO license, you WILL not show up as licensed on the consumer acess site. The majority of MLO applicants are in compliance with a NMLS status of "Pending - in review" which meets the requirements to conduct business & we are just awaiting processing by FL to clear and issue license. Read comment below when searching for valid MLO on the access system w/o a MLO license-"No matches found! No NMLS records match the search terms you provided. You may want to try a new search using more general terms. For further assistance, view the search tips or click on the FAQs above" Who thinks that a realtor or consumer is going to click on search tips or on the FAQ's? No where on site explains the issue in FL or directs them to FL DFR site to verify that the person who has no match is in fact FINE and approved to do business - Inform people of this "glitch" in FL please
FirstWest: (January 12, 2011 7:44am)
jealousy? Is not that. The Goverment has two completely separate sets of rules on how people do loans. I have to pass testing, background checks, education requirements, etc that you do not have to bother with. The goverment holds me to a higher standard than they hold you. Imagine that in order to drive a car you have to pay and pass a hard test but all your friends don't have to? How would that make you feel?
doitright: (January 12, 2011 7:41am)
Mark I am not sure what state you work in ? You may want to check with your boss or read your state disclosures before you make such comments .Please don't forget to mention pre approve your borrowers in your rebuttal ? You can only offer a pre qual as a broker and that is useless . That is what I mean check your lending laws , and how are you locking someone in when i t is not your own money or your companies money ? If you are issuing a written lock in form that is risky but at least in my state illegal for a broker to do so . Just curious and also check we don't need individual numbers at this point , just my banks number .Lets stop the jealousy and all get along , work together getting people into homes and unify the want to lend to all . Thanks
5pence: (January 12, 2011 7:31am)
cdingwell - type in 12/27 in the search box, upper right corner
mark: (January 12, 2011 7:28am)
doitright - you had best recheck the laws. You have to have your own individual license number. Being Broker, I can lock in and guarantee rates upon application. I can also close in under 30 days. I just do not like that fact that I have to go through so many hoops that you do not have to go through. If you want to play nicely, then everyone should have to do and follow ALL of the rules. They should not just apply to brokers. Isn't that a form of discrimination??
doitright: (January 12, 2011 7:18am)
Actually Frank we don't need a number as a loan officer for a bank as of yet , we are allowed to work off the banks number . The day is coming when we will need it . I don't understand the jealousy of mortgage brokers to bankers? Can't we all just get along. I could care less if I go head to head with a broker , I know I can issue a pre approval and legally give a customer a lock in and they can't. It seems most brokers on here and I don't know why feel like the bank loan officer is a problem? Probably due to them lacking the above since that is crucial to survival in this market. I can walk right into my underwriters office and discus and deal and close a deal in 20 days or less, maybe that is why they seem to want to slam bankers. Lets just all get along knowing the banker has his own funds to lend and the broker does not. In this market get a lock in form signed by your loan officer.If that is what you want then go to your bank loan officer , plus we have great rates! Thanks lets all get along
[email protected]: (January 12, 2011 7:04am)
Is there a way to view an old video-specifically, Dec. 27th? Enjoyed meeting you both in Denver.
deblakeley: (January 12, 2011 7:01am)
As far as I am concerned all those 86,000 who did not pass the NMLS exam, can go work at American General or a Citi small loan office.
mark: (January 12, 2011 7:00am)
They have to register but they do not have to take any education, pass any national test, pass any state test, do any credit checks, do a FBI background check and be fingerprinted. Why work with a bank LO who is un-educated? Keep working with Mortgage Brokers!!!
frankgaray: (January 12, 2011 6:40am)
Bank L/O's have to be registered. ~ Brian
frankgaray: (January 12, 2011 6:40am)
Right bankers don't need a license but they still need a number.
doitright: (January 12, 2011 6:33am)
The MNLS system is fouled , there are plenty of loan officers that had a number prior and now work for a Federal Bank or Credit Union, they show up as expired when in fact they are totally allowed to practice. When you call MNLS or the State they are no help since there is no category for works for a Federal Bank. So don't believe what you read on the consumer MNLS it is incorrect in many cases , they need to fix it . Another waste of tax payers money and it makes the site useless it is not accurate at all . You may want to point this out in your next video . All bank loan officers will have to just do the credit report, finger printing , and criminal check in the next few months but that has not happened yet. Until then any loan officer that had a number at the prior job and works for a Federal Bank or Credit Union is fine to originate but the site will not state that so it is a flaw of the state and the MNLS reporting site . Pretty lazy of them not to do something about this .
Owl Tree: (January 12, 2011 6:10am)
I would recommend that all loan officers, even if they don't need to, go through the NMLS process. If you don't, then I hope you are very, very, very happy with your employer. A good friend of mine left a TBTF bank, and know he is unable to write any business.
Jimmy Mac: (January 12, 2011 5:59am)
I'm back! Happy New Year! NMLS has given the banks a free ride from having to individually license their LO's. The banks agree to educate and update via CE to their LO's so that NMLS doesn't have to. I am ok with this situation because I know several people who couldn't pass the NMLS exam and had to go work at the banks. That gives me a competitive advantage over less knowledgeable/competent people being employed at the banks. #2 If LO's decide to leave a bank, they are not going coming to the wholesale side without a license. I have a friend that's been in the industry for 15 years and went to a large bank and let his license lapse because he didn't need it renewed. IMO, he is screwed! He will not be able to be a broker/LO without passing the NMLS test and aquiring his lisence. It's a death sentence not to have your own lisence for at least portability reasons.
TD Hawk: (January 12, 2011 5:36am)
Builders aren't fan worthy? Come on now!!! Some aren't so bad. www.BuilderFish.com
John's Texas: (January 12, 2011 5:27am)
Good Morning from Texas. As to fed regs and compensation looks like the TBWS webinar Thursday will help. There are several opinions on the web. NAMBA is the most confusing on their Q&A section they have the FED response then they have their own contradiction. What a mess. All Good and keep warm.
hdrider: (January 12, 2011 5:21am)
No license is required when working for a Federally Chartered bank. However, I believe you still need to register with the NMLS.
imnosaj: (January 12, 2011 4:18am)
What is the rule for bankers?? I am hearing they do NOT have to get licenced through NMLS. Or be licenced period??????? Whats the deal???