Minnesota Mortgage Blog - MN Mortgage and Real Estate News

NOT ALL LOAN OFFICERS ARE THE SAME
Knowing the difference can save you money and headaches.

St Paul, MN: You need a home loan, so you call the various banks, brokers, and mortgage lenders shopping for the best deal, thinking this is the correct way to get a mortgage loan. Unfortunately, you've only don't half of your homework, as there are some major differences in the quality and educational requirements of the Loan Officer. The person you are entrusting to handle the largest financial transaction of most peoples lives.

Until recently, most Loan Officers got their training simply by being hired, given a desk, a telephone, and the employer saying "Watch and learn from this guy." That is how I started in the business. There were no schools, and no educational, or background requirements. A very small number of Loan Officers would take voluntary classes to be the best they could, but this was the exception, not the rule. For example, after many years in the business, I personally (voluntarily) attended the Residential Mortgage Lending class put on by the Minnesota Brokers Association way back in 1998. The first year the class was ever offered.

With the current mortgage and foreclosure mess, that is all changing. This is because a portion of the current crisis was blamed on uneducated, untrained, and unlicensed Loan Officers. Over the past few years, many states enacted rules and regulations to ensure a better quality Loan Officer. Some states did better than other. In 2008, the Federal Government stepped in to create nationwide licensing and registration requirements. Those rules will be fully enacted by all states by January 1, 2011.

Everyone would agree that this is a great step forward, except in typical Washington fashion, they got it wrong. Only half the Loan Officers "need"  to pass the new rules. Bank Loan Officers are NOT required to complete the stringent requirements, while Loan Officers at direct lenders, mortgage lenders, and mortgage broker companies ARE required to meet the new guidelines.

I have now passed the tough Federal test, Wisconsin State test, and the Minnesota State test. Having done so, it is easy to see why so many current Loan Officers are FAILING these tests. The tests are hard, and they should be.

Sadly, those unwilling, or unable to pass the educational, and testing requirements are NOT being forced out of the business. They simply are going to work at the banks!

I think the choice is clear.  Who would YOU rather be working with on the largest financial transaction of your life? A fully trained, licensed, fingerprinted, and background checked Loan Officer - or the untrained, unlicensed Loan Officer at the bank? 

Here is a chart to show the differences in Loan Officers:

CHECK YOUR LOAN OFFICER OUT on the

Nationwide Mortgage Licensing System and Registry  http://www.nmlsconsumeraccess.org If they are NOT on this list, be very cautious about using them. My NMLS # is 274132

The best S.A.F.E. ACT Loan Officer (non-Bank) analogy I can use is having a choice of working with an experienced CPA to do your taxes vs. you using Turbo Tax to do it yourself, but paying the same price, if not lower!

Finally, THIS IS A CLEAR REASON why people should follow my #1 mortgage shopping rule: GOOGLE THE NAME OF YOUR LOAN OFFICER, and check them out in the public NMLS registry before allowing them to handle the largest financial transaction of your life!

Be Smart - Get Answers

Joe Metzler is a Certified Minnesota Mortgage Specialist (MMS). His team has over 50-years mortgage lending experience in MN and WI. Joe's NMLS  # is 274132

33 Wentworth Ave E #290, Saint Paul, MN 55118
Ph: (651) 552-3681
         We Beat The Banks Everyday

Mortgages Unlimited is a Full Eagle FHA Lender. We lend in MN, WI only
(C) Copyright 2010 - Joe Metzler. Re-Blog but don't steal.