Mortgage Broker Licensing "On the Way"

I've been an outspoken advocate of this for a very long time, even before the "mortgage meltdown". Why and what is the National Mortgage Licensing System? Let's start with the latter. The National Mortgage Licensing System is a "web-based" system that which allows mortgage brokers, loan officers and lenders to apply for, manage and renew licenses using a uniform application process. There are 8 states currently using this system; Idaho, Iowa, Kentucky, Massachusetts, Nebraska, New York, Rhode Island and Washington. However starting July 1, 2008 another 6 states have committed to joining the NMLS and these include; Connecticut, Louisiana, Mississippi, North Carolina, New Hampshire and Vermont.

Now onto the former; the why. I am in 100% support of this system because we are one of the few "non-licensed" (at least from an individual broker standpoint) entities in the business community. Realtors, title agents, appraisers, inspectors and others all must apply for and maintain licenses for their respective industries. Aside from the company requirements individual mortgage brokers do not have to be licensed. What does this lead to? Uneducated people giving advice, recommending products, and putting together the necessary information tied to the biggest decision most people and families will ever make; their home purchase! Unfortunately in this industry their were and to some extent still are "unethical and shady" mortgage brokers/lenders. I want these people either educated on doing things the "right way" or out of the industry all together. It hurts my professions reputation and creditability when these people simply give bad advice or do things the "wrong way".

I take this career and my business very seriously and in turn my clients loans and financial situation very seriously and I believe it shows in my client testimonials and the reputation I have built for myself and Professional Mortgage Group, Inc. However, many brokers are "transaction based" just trying to make a quick buck and willing to do whatever they have to in order to achieve it. I truly believe myself and Professional Mortgage Group are "relationship based" and want what's best for our clients first and we become secondary. The fallout in the mortgage industry has will and has actually helped businesses that have and continue to do things the "right way" and I want to see this trend continue. The NMLS will hopefully lead a path down the right direction in achieving this.

Currently the NMLS manages 5,145 companies, 3,557 branch locations and 16,867 loan officers nationwide. What's a little comical is that the states that have really been hit hard by the "mortgage meltdown" (i.e. California, Florida, Nevada, and Ohio) have yet to commit to the NMLS, let's hope this changes.

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