A national change. Or maybe it is not going to be soon for us in Central Ohio. Charles who wrote this says "Because implementation dates vary by jurisdiction, not all loan officers will be searchable in the system right away but, soon enough this will be a very valuable tool."
This is a Re-Blog of information provided by Charles Daily a loan officer in Minnesota.
On January 25, the National Mortgage Licensing System and Registry (NMLS) will be online and available to the public. Realtors and buyers alike will be able to easily find critical information about loan officers. Because implementation dates vary by jurisdiction, not all loan officers will be searchable in the system right away but, soon enough this will be a very valuable tool.
The available information is pretty comprehensive unlike most current license lookup services. Rather than list what information will be searchable, let’s take a look at what questions this search will answer:
1. Is this loan officer experienced?
2. Has this loan officer had job gaps in his/her career (last 10 years)?
3. Does this loan officer tend to stay in one place or bounce around from place to place (last 10 years)?
4. How long has this loan officer been at their current place of employment?
5. What are the loan officer’s qualifications in financial services related businesses (last 10 years)?
6. Does this loan officer work for a branch company and, if so, where’s the corporate headquarters?
7. Is this loan officer engaged in any other businesses?
If a borrower or Realtor wants to exercise due diligence on a potential experience with a loan officer, this will be of significant use. If one uses this tool to research the loan officer, and to some extent their company, they may have further questions about the mortgage company. There are more options than the BBB, rip off report and other consumer ratings agencies to do this.
HUD uses a program called Neighborhood Watch to analyze patterns of loans that become delinquent within the first 2 years of origination. It serves as a good barometer of the quality of loans originated by a FHA mortgagee and it can be searched all the way down to the individual branch of that mortgagee (a good "compare ratio" is below 100 by the way). It is VERY uncommon for Realtors or borrowers to use this as a tool but it’s a real weapon and, I think, should be used. It's also a sign of things to come.
It would not surprise me if ultimately the NMLS Unique ID number for each originator becomes required to be added to each loan application. Using that information FHA, Fannie Mae and Freddie Mac would be able to track loan performance from the mortgage company to the branch and all the way down to the loan originator. I am not a big believer in the short term benefits of continuing education and testing but this addition of a public search feature to the NMLS and the future possibilities for loan officer tracking ARE an exciting and useful addition.
This post provided by Maureen McCabe HER Realtors*
Contact Maureen McCabe of HER Realtors* - 614.388.8249
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*Real Living HER
Information is deemed to be accurate but should be verified to your satisfaction. Information provided herein is supplied by several sources and is subject to change without notice. Opinions expressed are solely those of Maureen McCabe.