I Am Personally Liable! Loan Officer Liability Versus Company

I am personally liable. Again, I am personally liable as a loan officer.

It used to be that one screwed up, they may or may not have been caught, either quit or got fired, and then moved onto the next company or even country, with their same old ways, and leaving the company holding the bag.

GONE!!! .......................................

We all make mistakes and no one can claim to be perfect. With the S.A.F.E. Mortgage Licensing Act of 2008, which was enacted as part of H.R. 3221 this past summer, a national database is to be setup to monitor loan officers, track defaults, and provide for a means of accountability. This is a matter of ethics, honesty, and fairness to the consumer. I have always prided myself on my own ethics and standards without a database to monitor me. This is a good idea in many ways. As Jeff Belonger put it in his article, Realtors-have-a-Fiduciary-Responsibilty-What-about-loan-officers, loan officers also have a responsibility to the customer and all involved.

"What is in the best interest of the customer?"

This registry asks questions about one's personal affairs (including previous bankruptcy), employment history, positions of authority, companies affiliated with and other identifiable information on you--the loan officer. This registration process gets quite personal in the disclosures and the questions asked.

As Alabama now falls as HUD exempt I currently do not have a license; however, our parent company does. With previous employment I have either worked under the jurisdiction of banks or other larger mortgage companies. Upon going back and trying to register on the Nationwide Mortgage Licensing System, the database is not recognizing Alabama nor Alabama loan officers. With further review, each state does have time leeway in establishing their own systems or alternately using this one. To see if this is required in your state please go here.

Is your lender required to sign up? Are you, as a loan officer, required now to sign up?

**Image complements of flickr.com