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Answers (12)
- Bob Brandt, "BobBrandtRealtor"
- Contributions:1019
The Mortgage Bankers Association's own building was sold at auction.
Buying unaffordable housing and office buildings is a lesson many consumers and professionals have learned. It does not affect the license and I do not think it should.
Buying unaffordable housing and office buildings is a lesson many consumers and professionals have learned. It does not affect the license and I do not think it should.
Interesting responses.
Well, it appears some states are more strict than others when it comes to the credit requirements for NMLS. Some states won't allow a BK or foreclosure for a MLO while others are more forgiving. FCB's have even less restrictions.
" A better question might be "should a Loan Officer that is responsible for a consumer defaulting on their mortgage lose their license"? "
--
I'm not sure I see the difference. A MLO has 2 clients, the consumer and the investor who ultimately buys the mortgage. A MLO that defaults costs the lender actual money and then for that lender to turn around and accept TPO from them seems a bit strange to me. I wouldn't if I were them. Also, in an FHA transaction everyone involved in the transaction must clear CAIVRS so if they defaulted on an FHA mortgage they probably could not close one anyway. A MLO's fiduciary duty is not only to the client, it's to the investor as well.
Well, it appears some states are more strict than others when it comes to the credit requirements for NMLS. Some states won't allow a BK or foreclosure for a MLO while others are more forgiving. FCB's have even less restrictions.
" A better question might be "should a Loan Officer that is responsible for a consumer defaulting on their mortgage lose their license"? "
--
I'm not sure I see the difference. A MLO has 2 clients, the consumer and the investor who ultimately buys the mortgage. A MLO that defaults costs the lender actual money and then for that lender to turn around and accept TPO from them seems a bit strange to me. I wouldn't if I were them. Also, in an FHA transaction everyone involved in the transaction must clear CAIVRS so if they defaulted on an FHA mortgage they probably could not close one anyway. A MLO's fiduciary duty is not only to the client, it's to the investor as well.
- wayne lancaster, "funds2"
- Contributions:1175
The question assumes a Mortgage Loan Officer should be judged differently than anyone else who defaults on their mortgage. Having a mortgage license does not offer any protection against all of the reasons one might default on a mortgage. Obtaining a license has it's own set of requirements, and if it restricted a MLO because of a mortgage default it should restrict anyone applying for a license in any field.
A consumer is free to choose whom they do business with, and if that is one of their criteria for selecting a MLO then it is their choice. Anytime someone's ability to earn a living is regulated judgmentally imposes serious ramifications on society. A defaulted mortgage has serious consequences for the consumer for years, and adding to it by denying a person a means to earn a living would appear to be harsh.
A better question might be "should a Loan Officer that is responsible for a consumer defaulting on their mortgage lose their license"?
A consumer is free to choose whom they do business with, and if that is one of their criteria for selecting a MLO then it is their choice. Anytime someone's ability to earn a living is regulated judgmentally imposes serious ramifications on society. A defaulted mortgage has serious consequences for the consumer for years, and adding to it by denying a person a means to earn a living would appear to be harsh.
A better question might be "should a Loan Officer that is responsible for a consumer defaulting on their mortgage lose their license"?
- Mack McCoy
- Contributions:1115
Well, you know, that's a good question, because it does make you think about how people come to decisions and judgments.
I might not trust a financial planner who went bankrupt. But when you draw up qualifications for a mortgage licensee, the ability to maintain one's mortgage during a recession in which sales are down by about half, values and loan amounts are down by a third, and compensation has been cut by regulation - wouldn't be one of them.
I might not trust a financial planner who went bankrupt. But when you draw up qualifications for a mortgage licensee, the ability to maintain one's mortgage during a recession in which sales are down by about half, values and loan amounts are down by a third, and compensation has been cut by regulation - wouldn't be one of them.
- ConnieK_Oklahoma
- Contributions:2899
not all of those are the same concept. A dr abusing drugs can have his profession judgement compromised. a CPA that didn't pay their own taxes might have just not made enough money because they didn't have enough business and haven't marketed themself well that doesn't mean they aren't a good CPA - it is not reason Enough to drop them.
garnder who's own front yard looks bad might be because they are so good that they have too many customers to do their own yard, nobody pays for their yard to be done. If they do a good job on other yard...then keep them (although I would never hire a gardner- preferr DIY).
500 pound fitness coach?? if they were advising me on how to lose weight- no. If they were coaching kids -no, but if they were simply the person running the team, organizing people by skill, motivating the team and did all that well...yes.
My favorite hair person has her own hair pulled back in a pony tail rather than fixed most of the time because....it doesn't pay and she has a hectic day doing other people's hair. I don't plan on giving her up anytime soon.
garnder who's own front yard looks bad might be because they are so good that they have too many customers to do their own yard, nobody pays for their yard to be done. If they do a good job on other yard...then keep them (although I would never hire a gardner- preferr DIY).
500 pound fitness coach?? if they were advising me on how to lose weight- no. If they were coaching kids -no, but if they were simply the person running the team, organizing people by skill, motivating the team and did all that well...yes.
My favorite hair person has her own hair pulled back in a pony tail rather than fixed most of the time because....it doesn't pay and she has a hectic day doing other people's hair. I don't plan on giving her up anytime soon.
- Nina Harris, "NinaHarris"
- Contributions:257
Without a doubt. We are facing hard economic times and one thing has nothing to do with another.
We need to show some compassion here.
We need to show some compassion here.
- David Stein, "Military Loan Expert"
- Contributions:315
Being from Scottsdale you of all people should know the financial wreck that has become Pheonix. Doesn't seem to matter what you did in that town, everyone was effected.
Just like there are people that are horrible taking advice, but that great at giving it. I do like the topic, makes you think about all professions.
Just like there are people that are horrible taking advice, but that great at giving it. I do like the topic, makes you think about all professions.
- Nikki patterson, "banzonpatterson"
- Contributions:60
I do not feel that someone should loose their license because they defaulted on their home loan. You have to think that the person probably had a hardship that they could not overcome and unfortunately could not pay their mortgage. Should their career be cancelled as well? Come on.... We gotta have more feelings for one another, and know that it can happen to us as well...
- Patrick Nolan, "Bucks County Banker"
- Contributions:239
I don't know that I agree with the premise or the NMLS credit report requirement etc..
There were lots of good loan officers on the state licensed side of the business that made the mistake a lot of people made in the 2003 - 2007 time period and over leveraged themselves believing the past three or four years of income was "normal".
A lot of them with insufficient liquidity / savings got crushed when 2008 came along and are now no longer eligible to be licensed through NMLS, so if they are still in the business they now work as an LO for a bank.
Prior to 2008 if you asked me what the maximum percentage my income could drop year to year I would have told you 50% and would have a hard time believing that would happen. 2008 came along and my income dropped close to 80%.
Fortunately I had sufficient savings to continue paying all of my bills ($9K per month in mortgage payments alone on a Primary, 2nd home, and 3rd home my mother-in-law lives in rent free) even though my income cratered for 1-year and my credit scores are still sky high thanks to a great wife that stays on top of it all.
I don't follow the logic that someone who is ethical and competent in the mortgage business can't be licensed if they had major financial issues in a once in a century financial meltdown that 2008 represented.
Just my two cents.
There were lots of good loan officers on the state licensed side of the business that made the mistake a lot of people made in the 2003 - 2007 time period and over leveraged themselves believing the past three or four years of income was "normal".
A lot of them with insufficient liquidity / savings got crushed when 2008 came along and are now no longer eligible to be licensed through NMLS, so if they are still in the business they now work as an LO for a bank.
Prior to 2008 if you asked me what the maximum percentage my income could drop year to year I would have told you 50% and would have a hard time believing that would happen. 2008 came along and my income dropped close to 80%.
Fortunately I had sufficient savings to continue paying all of my bills ($9K per month in mortgage payments alone on a Primary, 2nd home, and 3rd home my mother-in-law lives in rent free) even though my income cratered for 1-year and my credit scores are still sky high thanks to a great wife that stays on top of it all.
I don't follow the logic that someone who is ethical and competent in the mortgage business can't be licensed if they had major financial issues in a once in a century financial meltdown that 2008 represented.
Just my two cents.
- Justin Sheftell, "Courtesy Mortgage"
- Contributions:3422
If you are ever stuck in a town with only two barbers, go to the one with the messy haircut.
- Steve Greene, "Steve Greene"
- Contributions:67
This is one of those questions where the specifics matter greatly. For example, suppose the mortgage loan officer had some sort of tragic event in their life which prevented them from working. Or suppose the accountant was contesting the IRS position...and maybe they will ultimately prevail. That might actually make them a very desirable CPA--they beat the IRS.
- Michael Emery, "MikeEmery"
- Contributions:7296
Would you trust a 500 lb fitness coach?
My junior high school gym teacher was probably 250 or 300 plus pounds. He could eat a hot dog in two bites. Appropriately he was the lunch room monitor. So much for being a role model.
It's amazing how many real estate agents have lost not one but multiple properties in foreclosure. I know of one agent that had seven foreclosures with seven separate lenders.
My junior high school gym teacher was probably 250 or 300 plus pounds. He could eat a hot dog in two bites. Appropriately he was the lunch room monitor. So much for being a role model.
It's amazing how many real estate agents have lost not one but multiple properties in foreclosure. I know of one agent that had seven foreclosures with seven separate lenders.
Do you think a Mortgage Loan Officer who defaults on his own mortgage should be allowed a license?
Would you use a CPA for your taxes who has a tax lien on their personal home for unpaid back taxes?
Would you hire a gardener who's own front yard looked like the Serengeti?
Would you trust a 500 lb fitness coach?
Just wondering
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