Boy has THIS legislation ever been overdue! Yes, loan originators' licensing is upon us and the playing field has certainly changed! Just a few years ago, it seemed that EVERYONE was in the mortgage business. Just ask your lawn guy or pool cleaner. They too were probably part-time loan officers! Heck, even your Realtor was getting in on the action. However, with the advent of Financial Reform, as of July 1, 2010, only LICENSED MORTGAGE ORIGINATORS are allowed to discuss, negotiate and quote terms for your next home purchase or refinance.
A short time ago, there were an estimated 11,000 mortgage loan officers operating both full-time and part-time in Arizona. Many were already in the business operating in a legitimate, career-oriented manner. Others were individuals that only knew of someone looking to buy or refinance a property and wanted "in on the action" to earn a commission.
Since the new financial reform laws have passed, only licensed originators are allowed to receive compensation for loan origination services rendered. What does it take to become licensed? Applicants must take and pay for 20 hours of financial classes, pass both the State of Arizona and National loan originators exams, clear the extensive background checks, including fingerprinting and credit review can qualify.
What has this done to the pool of originators? Exactly, what it was intended to do. Part-time loan officers have raced back to their steady jobs and only the serious, career oriented producers have remained. What was once a field of 11,000+ in the business has dropped to below 2,000! It is estimated that by the time the State's Department of Financial Instituations catches up on applications, there will be a pool of about 2,600 licensed loan originators.
Congratulations to our legislators for getting this one right!
By the way, I, Jon A. Achilles am a licensed Mortgage Loan Originator!
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