Knowing the difference can help avoid frustration!Recent changes to the lending industry requires all loan officers to have a tracking number, known as an NMLS number (Nationwide Mortgage Licensing System). 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 make many believe the Loan Officer is licensed. Sadly, this isn’t true, and working with an unlicensed, inexperienced Loan Officer can cause you headaches, hassle & money.
Simply put, Loan Officers at Banks, most Credit Unions & Mortgage Companies owned by a bank are NOT REQUIRED to be licensed, successfully complete continuing education classes or pass any state or federally mandated tests to originate your loan!
Banks have so far successfully used their financial power to resist these loan originator safeguards! Hiring less experienced loan officers saves the bank money by reducing their labor costs--- however their inexperienced originators burden you with delays, lost opportunities, confusing advice-- and as the market has recently shown-- this "big bank" strategy results in you paying higher interest rates by going with them!
A LICENSED Loan Officer will say “State License” and will have one or more STATES listed with licensing information.
An UNLICENSED, simply REGISTERED Loan Officer will show “Federal Registration” and Federal Mortgage Loan Originator instead of a state license.
