In hopes of improving the quality of all mortgage lenders, the US government has created the nationwide S.A.F.E. Act. This Act creates much guidelines and standards to increase the bar of those working in the mortgage industry, among many other things to protect the consumer from sharks and, well themselves. As the industry goes through many changes in mortgage guidelines and regulation, almost too many to humanly keep up, they have also instituted education and licensing requirements for mortgage loan officers. This has aided in eliminating over 50% of all mortgage loan officers in the country. The underlying hope is to leave only the cream of the crop- or as I put only the professional waiters-no actors.  HUD which oversees the FHA mortgage lending industry, has instituted their own set of guidelines. See a blurb below:

HUD/FHA HAS NEW COMPLIANCE REQUIREMENTS AND RESTRICTIONS FOR YOU TO ADD TO YOUR QUALITY CONTROL PLAN-EFFECTIVE IMMEDIATELY

The HELP FOR SAVINGS HOME ACT OF 2009 EFFECTIVE MAY 2009 establishes additional ineligibility criteria for FHA-approved lenders and mortgagees EFFECTIVE NOW. A lender or mortgagee shall not have any officer, partner, director, principal, manager, supervisor, loan processor, loan underwriter, or loan originator of the applicant mortgagee who is: (1) currently suspended, debarred, under a limited denial of participation (LDP), or otherwise restricted under part 25 of title 24 of the Code of Federal Regulations, 2 Code of Federal Regulations, part 180 as implemented by part 2424, or any successor regulations to such parts, or under similar provisions of any other Federal agency; (2) under indictment for, or has been convicted of, an offense that reflects adversely upon the applicant’s integrity, competence or fitness to meet the responsibilities of an approved mortgagee; (3) subject to unresolved findings contained in a Department of Housing and Urban Development or other governmental audit, investigation, or review; (4) engaged in business practices that do not conform to generally accepted practices of prudent mortgagees or that demonstrate irresponsibility; (5) convicted of, or who has pled guilty or nolo contendre to, a felony related to participation in the real estate or mortgage loan industry (i) during the 7-year period preceding the date of the application for licensing and registration; or (ii) at any time preceding such date of application, if such felony involved an act of fraud, dishonesty, or a breach of trust, or money laundering; (6) in violation of provisions of the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.) or any applicable provision of State law; or (7) (in violation of any other requirement as established by the Secretary. Entities already approved by FHA will not be permitted to renew their status at the next annual recertification date if they are not in compliance with the above-listed eligibility criteria. This guidance has been clear to state there will be no felons working in the loan business. I wonder how many more loan officers will be eliminated with this new restriction to character?

Dale Robyn Siegel