Arizona Law Will Require Loan Officers to be Licensed - In 2010

Teri, in Texas many years ago, loan officers just had a two day class and fingerprinting, now it is more rigorous training for licensing. Sounds like Arizona has slowly come around to a more formal structure like other states.

Gary, I think loan officers must be required to be as educated - at least - as are Realtors! ;-) I think that the loan fiasco has really heightened the need to license loan officers....finally!

Teri- The funny thing about this "requirement" is that so many loan officers have been looking for this opportunity to show their qualifications... this is long overdue.

Chuck, you are so right. My l/o has been on the bandwagon for quite awhile to get this on the books....finally it is coming to pass.....;-)

I'm not a mortgage broker nor do I play one on TV, but I suspect licensing is a step in the right direction. In CA, mortgage brokers can get a real estate license -- which is almost as easy as putting the square pegs in the square holes -- or they can be licensed under the Dept. of Corporations, which involves paying a fee.

A consumer's best approach is education and figuring out which mortgage broker is on the level and which are likely to change the terms of the loan at the last minute or worse, can't perform at all.

See, I reciprocate. :)

Teri it makes a lot of sense to have licensing procedures and surely would at least help clean up some of the riff raff in the field.

Elizabeth, What? You're not and you don't? ;-)  I think this has to be better than not having a license.

Good girl, you DO reciprocate, you are learning. ;-)

Bill, I agree completely. ;-)

Teri, finally!  I strongly believe that the loan officers should have even stricter licensing requirements than  Realtors.  They have more "opportunities" to commit dishonest acts than us.  Plus, they are directly responsible for making financial recommendations to their clients.

Yeah, but I don't wany more featured posts. It wears out my finger to scroll all the way to the bottom and then back up again to re-read a post so I can answer it somewhat intelligently. Notice I said "somewhat."

Marzena, I think it only applies to brokers and owners of mortgage brokerages....hope that's not true...;-( They are literally the one that helps clients make those huge financial decisions.

Elizabeth, I'm with you on the featured posts. I usually open two windows so I can keep track better. ;-)  So, that's another tip for you - free! ;-)

Teri--I agree wholeheartedly! These laws won't affect the good mortgage people but will hold those that are not so good accountable for their actions.

I see that the FED is also asking for tighter regulations on lenders that will hopefully take away much of the "bad loans" masquerading as great bargains. A good lender will be more able to discern the difference between such loans and properly advise the client.

Teri, finally something is being done. Hopefully it will keep the fraud down to a minimum....;-)

Chuck, that's the key - a good loan officer....;-)

Finally???  We LO's aren't all that bad without the licensing, why should we have to take classes and do as much class work as realtors?  Just Kidding. ;)

I completely agree Teri and like Chuck eluded to with some LO's, I too look forward to the opportunity to enhance my profession and credibility with the new required licensing. 

Eric, nothing personal ;-)  I'm sure you're heads and shoulders above those that are inept and dishonest...

Seriously though, I think it will enhance and provide credibility to mortgage brokers/loan officers.  ;-)

Teri,

I think this is absolutely fantastic!  Arizona should have done this years ago.

Mike in Tucson

Mike, I agree. They require Realtors to be licensed and educated, and loan officers - of all people - need the same requirements. ;-)

I've always felt licensing mortgage brokers but not LO's was a bit ridiculous!

Glad to hear the new news.  With so much turmoil in the market and the impact on so many families this is a wise choice.

This is great news for AZ realtors.  Hooray!

Ron, hopefully everyone dealing with real estate will have a license. ;-)

Tracy, you are so right - just about time is all. ;-)

Christine, yes it is. My loan officer has been fighting for it for quite some time. ;-)

Teri, I certainly agree.  If I get employed by a bank, I can immediately start originating mortgages, no training, no studying, etc.  Although many banks might make you get or have a certain amount of mortgage training and info, it isn't a REQUIREMENT.  But if a broker, which does the SAME thing, the license IS  needed. Crazy! While it also might not have prevented our current mortgage problems, maybe better educated LO's will lessen the chances of repeating these issues. I hope all states follow your lead!!

Ronald, now that does not make sense does it? Loan officers need to be licensed - period. ;-)