New York state loans requiring licensing

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, any mortgage loan officer who wants to work in New York State must have a license. Getting this license requires a 20 hour course in responsible lending. Financial, criminal, and knowledge tests are also required for the license. Around the country, similar laws are likely to be taking effect within the next few years.

Loans offered by bad employees limited

One very specific problem is addressed by this Secure and Fair Enforcement for Mortgage Licensing law. Many of the bad loans and fast cash advance products that contributed to the economic downfall came from a unique subset of lenders. You didn’t need a separate certification if you worked for an employer that had a mortgage license. Many loan officers who made no credit loans would jump from job to job after fired for making bad loans.States can keep closer tabs on mortgage lenders with these licenses.

Light licensing requirements

The mortgage licensing needs may not be enough, as outlined by some industry watchers. Some individuals 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.

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