Wednesday, October 25, 2006

NY Mortgage Brokers to Be Registered

A story appeared in the NY Times about a new law requiring individual Loan Officers to be registered with the New York State Banking Department. This is an excellent idea. There will be minimum educational requirements so that we can at least hope to have a base level of expertise in our industry.

The angle of the story is that those who perpetuate fraud won't be able to move to another state to continue defrauding consumers. That may or may not be true, I can't say. But I think that the vast majority of mortgages originated here in New York City are on the up and up.

I like the law because it will serve to create expertise in mortgage lending. Right now if you can fog a mirror and are over the age of 18, you can be a Loan Officer. My competition is anyone who fell into the position, or saw some easy money a few years ago. Mortgage originating is a complicated business that in which there are many variables that need to be juggled effectively in order to close a loan properly and professionally. It's not simply selling, nor is it entirely knowing lending guidelines or understanding the housing types and the economy in general. It's a combination of so many different abilities, that a license might help keep those out of the business who aren't willing to put in the time to learn what it takes.

This is a business that requires specialization and constant updating of one's skillset to be proficient. I think it's time that it was recognized as such.

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