July 1st is approaching fast and that is the deadline for Arizona Mortgage Loan Originators who do not work for big Interstate Chartered Banks to obtain their Loan Originator License which is mandated by the Secure and Fair Enforcement for Lending. Act of 2008.
In other words, if your Loan Officer does not work for a big retail bank then he or she cannot originate a mortgage loan after June 30th, 2010.
Quick Facts as of June 10th 2010:
- 1200 Loan Originator Licenses have been issued (yep, including mine)
- 200 Loan Originator License Applications have been reviewed and submitted back to the applicants to resolve outstandindg deficiencies AND the applicants have responded back to the request
- 800 Loan Originator License Applications have been reviewd and submitted back to the applicants to resolve outstanding deficiencies but have not responded back back (yet).
- 1100 Loan Originator License Packages have yet to be reviewd.
Amazingly, that is only a total of 3300 individuals who have sent in an application package to the Arizona Department of Financial Insitituions to get licensed; and 800 of them haven not bothered to respond with the reequest to provide additional information and/or to clear any outstanding deficiencies.
Here is a video of Paul Klimke, Vice President of the Arizona Association of Mortgage Professionals, presenting the latest staticstics about how many loan originators applied; what there license status is; and what and individual with or without a loan originator license can or cannot do.
Finally, we are entering a new era in mortgage lending and this industry has been elevated to higher standards. It is about time…
Christoph is a licensed mortgage loan originator in the Greater Phoenix Metropolitan area.
Scary numbers. Not many of us left.
Christoph,
I agree, though there will be a lot of people who will be affected by this rule, the legitimate hardworking mortgage lenders will also shine.
Perhaps we’ll need one in Nevada as well.
Not good:
“800 of them haven not bothered to respond with the reequest to provide additional information and/or to clear any outstanding deficiencies.”
I think this will help gain back the respect the industry desperately needs.
New Jersey revised it mortgage licensing laws a while back. It does help when there is more of a commitment to the trade.
Hopefully the thinning of the ranks will help improve the quality of service. I think a similar phenomena has been happening around the country.