Loan Officer Licensing may be a required very soon in all states. Loan Officer Licenses among other things have been introduced to in the Congress as a may to reduce fraud and increase responsiblity nationwide. If passed, this bill would require all states that do not currently have a loan officer licensing scheme to set one up. Over 30 states have already adopted a license scheme for loan officers in the last 5 years. This bill may force the remaining states to follow suit. With the Nationwide Mortgage Licensing System being organized at the same time, it could all come together very nicely to make it simple to obtain the loan officer licenses needed for each state.

Other items intersting with this bill are possible provisions for eliminating the Yield Spread Premium (YSP) earned by the licensed mortgage broker. Currently most mortgage brokers earn about half of their fees on the "back-end" from the lender. This has been considered legal by HUD regulation, specifically the Real Estate Settlement Procedures Act (RESPA) although many consumers have tried to argue against the legality of this type of payment in court. Making this fee illegal would possibly force many mortgage brokers out of the business.

Representatives Brad Miller (D-NC), Mel Watt (D-NC) and Barney Frank (D-MA) introduced "The Mortgage Reform and Anti-Predatory Lending Act of 2007" on October 22, 2007.

Key provisions of the legislation include:

· Establishment of a federal "duty of care;"
· Required licensing for all mortgage originators, including brokers and bank officers;
· Minimum standards to ensure a borrower's ability to repay;
· Expanded and enhanced consumer protections for high cost loans under the Home Ownership and Equity Protection Act (HOEPA); and
· Foreclosure protection for renters.

Steven Sheasby, founder of Integrity Mortgage Licensing, has worked with numerous mortgage companies with licensing across the country. He has managed multiple compliance departments for nationwide lenders and brokers. His experience in mortgage licensing and other mortgage regulatory compliance issues has given him the inside track for dealing with the states without the expensive cost of an attorney. Contact Integrity Mortgage Licensing at 714-721-3963 or ssheasby@integritymortgagelicensing.com

Source: www.articlealley.com