Michingan Mortgages

A big change is coming April 1 for Michigan. Anybody that is going to sell mortgages, or better put is a Michigan mortgage loan officer will have to have:

• to be fingerprinted
• have a criminal background check done (no felony convictions & no convictions for forgery, identity theft too)
• either have 3 1/2 years mortgage experience or take a required mortgage study course
• then take a state sponsored test and pass at least 75% of the questions

From what I have been told the Michigan Mortgage test is one of the hardest in the nation. Even experienced loan officers are flunking the test. The new Michigan mortgage loan officer examination tests the loan officers knowledge of all the mortgage laws such as

• Reg Z
• Respa
• Consumer Protection act

This is a great step toward better enforcement of laws that protect the consumer. I worked at a mortgage office where there was a guy stealing identities (unknown to management... he had quit and then arrested at another company.) This will keep people like him out of the Michigan mortgage industry.

Though now I believe they need to come out with nationwide standardized test with sub chapters for each state. Sometimes companies have to hire a person to sort out all the different rules and testing for each individual state. Right now it is becoming convoluted because every state has different tests and different rules which limit a person from doing business in different states.

That was done with car dealerships, and dealerships like off road vehicles like ATVs, snowmobiles. I bet a lot of people didn't know that is the reason why you can't go on line and buy a vehicle from a out of state dealer. It cuts down on out of state competition which hinders internet sales and competition.

But it is a good thing that there is now licensing for Michigan loan officers.