Finally, Finally, Finally!!! Bill Signed to License Mortgage Loan Workers!!!!

It's great to see that finally the lawmakers in Arizona decided that 10,000 loan originators and front line employees of mortgage companies, brokers and lenders should be subject to screening, processing, licensing and accountability.  The law will not go into effect until January 1, 2010, but now all involved are put on notice and will know the licensing requirements to be involved in the mortgage process.  No longer will those individuals from out-of-state, who could not qualify to be involved in mortgages where they came from, conveniently come to Arizona and easily, without licensing, become involved.  Under the old system, we were encouraging unscrupulous individuals to come here because it was so easy.  As of 2010, loan officers and mortgage originators will be required to pass a test, pay a fee and notify the Arizona Department of Financial Institutions where they are working.  They will also be required to complete six continuing education units for license renewal.

To help in the process of helping to weed out fraud, prevent abuses and protect consumers, a loan originator is prohibited from:
1)  acting on their own behalf, accepting any monies or documents in connection with a mortgage loan application.
2)  receiving any compensation in connection eith negotiating or arranging a mortgage loan if the person is not licensed.
3)  contracting with an unlicensed independent party who acts as a loan originator.
4)  being employed by more than one mortgage banker or broker at any one time.
5)  collecting compensation as a real estate broker or salesman unless the originator is licensed as such, and the originator discloses to the consumer that  the originator will receive compensation for both the origination and real estate services.
6)  making a false promise or misrepresentation or concealing an essential or material fact in the course of business.
7)  failing to truthfully account for the monies belonging to the party to a mortgage loan transaction or failing to disburse monies in accordance with an agreement.
8)  engaging in illegal or improper business practices.
9)  advertising or soliciting mortgage business in any manner without using the name and license number of the employing mortgage broker or banker.

All of the above may seem obvious, as abuses, but now it is in writing and therefore can help in enforcing accountability.  This is definitely a step in the right direction.