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Stricter Rules For Loan Officers

Sunday, July 16, 2006

On June 28, the National Association of Responsible Loan Officers (NARLO), the trade association of mortgage loan originators, visited with lawmakers in Washington, D.C., to discuss loan officer issues.

"The members of the National Association of Responsible Loan Officers are fed up with mortgage loan fraud and the low barriers to entry into the mortgage industry," said Robert Skrob, NARLO Executive Director. "For NARLO members, minimum licensing standards are not acceptable. We must clean up our industry, and to do that we must require all entrants into our industry to undergo a minimum of 40 hours of training, testing and background checks."

The National Association of Responsible Loan Officers represents the 400,000 mortgage loan originators throughout the country that are employed by mortgage brokers. NARLO fights mortgage fraud by advocating stricter standards for loan officers and through public education.

1 Comments:

  • The causes for mortgage fraud is not due to a "low barrier" to entry. That's a smoke screen for those who are frustrated with fierce competition. Mortgage fraud is committed by people who lack moral principals and commit fraud in the process. That is the core problem that needs to be aggressively dealt with.

    Fraud should be dealt with far more harshly than it is presently. It's important to remove the bad apples from the business, but at the same time not cripple existing businesses who do a good job.. which is the vast majority.

    New laws, beyond the obvious basic qualification tests, are most often intended to reduce competition, and have little effect on fraudsters.. many times they perform their magic without a license and without regard to rules anyway, and will continue to do so no matter what new laws are imposed on the good guys.

    The answer to fraud is to truly penalize those who perpetrate it. Make it financially hazardous to commit fraud. Impose and execute them under criminal statutes.. already on the books. Let's start there-if we don't enforce laws already on the books, what's the logic in creating even more paperwork which is imposed almost exclusively on the good guys?

    These "put up more barriers" schemes have more to do with restricting competition than reducing fraud.

    Bill McKee
    Realty Advisors, LLC
    Milwaukie, OR.

    By Bill McKee, at 6:11 AM  

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