Hello, LOs!
They do the same job, but the educational requirements are dramatically different.
For years, nonbank trade groups like the Community Home Lenders Association have complained to the Consumer Financial Protection Bureau that continuing education and licensure requirements for LOs at depositories and IMBs need to be standardized. And each year, the CFPB has essentially ignored the group.
Requirements for nonbank LOs include a 20 hour pre-certification course; eight hours of annual CE courses; registering in the Nationwide Mortgage Licensing System; and submitting fingerprints for a criminal background check.
Depositories, however, were not bound by all of the requirements put in place by the SAFE Act. The only overlapping requirement is that all bank LOs must be registered with the NMLS and submit fingerprints for a background check.
The gap in knowledge on regulations and mortgage products can be vast, LOs and continuing education instructors told HousingWire Mortgage Reporter Maria Volkova.
One former Wells Fargo LO said it was a challenge getting up to speed when she made the jump to the IMB side.
"I think that the depositories are not as picky in making sure they are hiring LOs with mortgage lending experience," said Karol Bourdet, now of Precision Home Loans. "Usually the nonbanks look for experienced LOs with a book of business."
LOs, what do you think? Are LOs at banks less knowledgeable about the mortgage industry and regulations than their nonbank peers? Share your thoughts with me at james@hwmedia.com.
Other stuff to know:
*Mortgage tech company Blend Labs laid off 10% of its workforce today, about 200 positions. The reduction will focus on Blend's title operations (Title365) and general and administrative functions. The company expects about $35 million in savings from the cost-cutting moves.
*A top-25 retail mortgage lender has struck a deal to acquire a California-based consortium of retail lenders. Stay tuned for more details in the next day or so.
*Against expectations of a decline, housing starts in March continued to climb to the highest level since 2006. Building permits also increased slightly when they were expected to decline.
*Bank of America originated $16.4 billion in residential mortgages in Q1, a sequential decline of nearly 29%.
Alright, that's it from me today. Hope you all have a great Tuesday!
James Kleimann
Managing Editor, HousingWire
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