1702 Viewmont

HW-LO-mortgage

The raison d’etre is the same whether you work as a mortgage loan officer at a depository bank or an independent mortgage bank – originate a purchase mortgage or refinancing for a client.

But the educational foundation and understanding of mortgage products, rules and regulations can differ dramatically between depository LOs and their nonbank counterparts. 

Federal regulations mandate that nonbank LOs take training prior to being certified. To maintain their license, a nonbank LO must take continuing education courses on an annual basis. Loan officers working for depository banks are not bound by the same requirements.

Several LOs who made the leap from a depository institution to a nonbank told HousingWire that they struggled with education requirements and felt less knowledgeable than their nonbank LO colleagues.

Some nonbank stakeholders take issue with the lack of uniformity of educational requirements for all LOs. They believe it has the potential to create consumer risk. 

Most recently, the Community Home Lenders Association, an influential nonbank trade group, renewed calls for the Consumer Financial Protection Bureau to create uniform requirements for all LOs. As of now, the CFPB does not have plans to make any changes.