I am Still in Shock? Licenses Matter!

After the 2009 financial Crisis, I assumed everyone understood risky and unsustainable Mortgage Loans were created by Non-Licensed Mortgage Originators which caused the financial disaster that hurt so many families?  There was a reason Congress passed a law requiring Mortgage Originators to be Licensed.  8 years later, the lesson was missed.

Over the weekend, I was working with a Licensed Real Estate Agent, Realtor, to sell a house.  The Realtor I chose knew the market very well and has a proven track record.  I only work with Licensed Real Estate Agents and I always check their license at http://www.grec.state.ga.us/ .  The Realtors I know appreciate people who choose Licensed Real Estate Agents and many have the same view with respect to Mortgage Lending.

Over the weekend, I got an offer on the house with a Bank Originator written into the contract.  I happen to know the Bank Originator given I hired the person into the Banking Industry from the waste disposal industry a long time ago.  The person has a super personality and is likable.  I explained to the Realtor that I did not have confidence in an agreement that was contingent on a Non-Licensed Mortgage Originator handling the buyers loan.  You can find out if a Loan Officer is Licensed by clicking here http://www.nmlsconsumeraccess.org/ .  See picture below.  Look for there State license below that will also have a consumer complaint link.  If the are just registered "Not Licensed" there is no State License information nor Consumer Complaint Link.

The Realtor had no idea that there are Non-Licensed Mortgage Originators engaged in the Georgia Mortgage Industry.  I explained it to her this way.  Would you buy your home from a Non-Licensed Real Estate Agent?  She said NO.  My POINT.  Just because someone is likable is not a basis to put a client's home purchase or sale in the hands of someone NOT State Licensed to do it.  They deserve a Mortgage Originator that has passed a competency test and is regulated by the State they are taking mortgage applications.

• Would you hire a Plumber who is registered with his supplier and not licensed?
• Would you hire an Electrician who is registered with his supplier and not licensed?
• Would you trust your health to a Doctor who is registered with a drug supplier rather than licensed?  Should your Doctor be required to pass competency exams?
• Would you hire a Realtor who is registered with their employer and not licensed?

Bank Mortgage Originators are Registered and do not have State Licenses, they have not passed a standardized competency test, and there is no State Regulatory Complaint Recourse for Consumers.  If a Licensed Real Estate Agent creates an issue for you, you can complain  to http://www.grec.state.ga.us/ (Real Estate Agents State Regulator).  Attorneys have the State BAR.   If you have an issue with a Federally Registered Non-Licensed Bank Mortgage Originator, who do you complain to?  Who regulates them?  Their Employer?  Remember 2009.