Wells Fargo and B of A top in complaints

St Paul, MN:  This isn’t shocking news to us, but it looks like the big banks, Wells Fargo and Bank of America, top the list of consumer complaints – especially for mortgages.

Read the story from the Washington Business Journal at http://tinyurl.com/ljs3csh 

You can avoid a lot of the problems if you understand who you are working with. Always work with an experienced, professional loan officer. The largest financial transaction of your life is far too important to place into the hands of someone who just quotes rates, but is not capable of advising you properly and troubleshooting the issues that may arise along the way. But how can you tell?

80% of Loan Officers are NOT Licensed

CHECK YOUR LOAN OFFICER OUT on the Nationwide Mortgage Licensing System and Registry 

http://www.nmlsconsumeraccess.org

Bank Loan Officers (Registered) versus SAFE ACT (Licensed) Loan Officers?
There is a BIG difference YOU need to understand

Washington has been busy protecting consumers from bad lenders right? Wrong! They have only done half the job, and sadly, the general perception by the public as to who is the better lender choice is completely wrong. Most people feel the brokers and the non-bank mortgage lenders have created all the problems. This isn’t true. Just the opposite. Consider the fact that Fannie Mae, Freddie Mac, and banks make the rules, and the banks review, underwrite, and fund the loans for brokers.

Recent changes to the lending industry requires all loan officers to have a tracking number, known as an NMLS number (Nationwide Mortgage Licensing System and Registry). It should be displayed on their business cards, E-Mail, web sites, all correspondence, and most loan documents. The display of the NMLS number may incorrectly make consumers believe the Loan Officer is licensed. Only 20% of Loan Officers are licensed. The rest are simply registered. Working with an unlicensed, untrained Loan Officer is not in a consumers best interest.

Simply put, Loan Officers at Banks, Credit Unions, or Mortgage Companies owned by a bank are NOT REQUIRED to be licensed, take classes, take continuing education, or pass any state or federally mandated tests to be a Loan Officer!

It is hard to determine if the Loan Officer is simply registered, versus licensed. nmls_checkWhen looking up a loan officer, you have to go to the bottom of their NMLS identification page and look under State Licenses/Registrations or Federal Registration heading.

  • A LICENSED Loan Officer will say “State Licenses/Registrations” and will have one or more STATES listed with all their state licensing information listed.
  • An UNLICENSED, but simply REGISTERED Loan Officer will say “Federal Registration” and the something like “Federal Mortgage Loan Originator”.

Now I am not trying to make this into a David versus Goliath story, but I am trying to emphasize the huge differences between Loan Officer training and education.  Look at it a different way. If you are sick and go to the Doctors office. Do you want to be treated by the receptionist, or the Doctor?


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