Mortgages: 66,469 Loan Originators Now Registered
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About a year ago something called the Nationwide Mortgage Licensing System and Registry (NMLS) was established to list all mortgage loan originators. So far, the system includes 66,469 loan officers with more to be added shortly.
What is the advantage of this program? Each loan officer gets a unique license number. If they lose their license in one state they cannot start lending somewhere else because state officials will not issue them a new license number.
This license number has enormous potential. For instance, all mortgages could include a loan officer’s license number. This would make it easier to determine who is responsible for the origination of a given loan. If one loan officer has an unusual foreclosure level, then perhaps loans with that number will sell at a discount — or won’t be sold at all.
The registry program was created last year as part of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (the “SAFE Act”). It’s the start of what in time will be tough, uniform licensing standards in all states — with no where to hide for loan officers who do subpar work.
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