New Loan Officer Compensation Rules

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currently some MLO’s do not have to do the 20 hrs of education nor take the tests because they are under the umbrella of their bank, credit union, etc. From the new finalized LO compensation rules, it states:The rule also sets uniform standards for qualifying and screening loan originators. Under current rules loan originators have different sets of qualifying standards depending on whether they work for a bank, thrift, mortgage brokerage, or nonprofit organization. The new rule provides a more level playing field so consumers can be confident that originators are ethical and knowledgeable. The final rules generally require: • That loan originators meet character, fitness, and financial responsibility reviews; • That they be screened for felony convictions; and, • That they are required to undertake training to ensure they have the knowledge about the rules governing the types of loans they originate. Does this mean that these “exempt” MLO’s will have to take the couse/exam?


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The CFPB has not revised its rules that allow loan officers affiliated with depository institutions (provided they have NMLS #’s in good standing and pass regular training classes) to write loans nationally without having to acquire licenses in each state. Anyone registering with tne NMLS is fingerprinted, screened for felony convictions, and required to complete regular training classes, much as realtors and licensed originators working for loan brokers do.

Answered over 1 year ago
Ted Rood
1304 6

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