Is Your Mortgage Loan Officer Licensed?
After January 1, the answer should be "Yes!" That’s when a new licensing law takes effect in Maryland. Those who work for banks are exempt, but loan officers who work for mortgage brokers - some 10,000 to 12,000 in the state – will be required to have a state-issued license.
In today’s environment with increasing identify theft and mortgage fraud, you need assurance that the person looking at your sensitive financial information has passed a criminal and background check. If they’ve been in business for less than 3 years, applicants also have to take a course covering regulations and ethics.
This new law was enacted because of increasing concerns about fraudulent practices of some loan officers. The Maryland Association of Mortgage Brokers lobbied for the law, and sees it as a way to help cut down on complaints and the actions of dishonest employees. This is a law with teeth, too. It is a felony to originate loans without a license, and the fine can be as much as $25,000 and jail time up to five years.
What does this mean to the home buyer? Confidence that your loan originator is a well-educated professional and that your personal information will remain confidential. And that’s one less thing you have to be concerned about when buying a new home.
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