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States Developing National Residential Mortgage Licensing System

Twenty-nine state agencies have indicated their intent to participate in the Residential Mortgage Licensing System by the end of 2009.

The System will be used by state residential mortgage regulators to accept and process national, uniform license applications and renewal forms that have been created by state regulators over the past two years.  Licensees will be able to electronically manage a single record in the System to apply for, amend, renew, and surrender licenses in one or more regulators.  The System will manage state licenses for mortgage companies, branches, and individuals. The System is scheduled to go operational in January 2008.

The Statement of Intent signed by the 29 state agencies clearly asserts the reasons for state participation:
• To improve the efficiency and effectiveness of state supervision of the U.S. mortgage market;
• To fight mortgage fraud and predatory lending that costs consumers and the mortgage industry hundreds of millions of dollars in losses each year;
• To increase accountability among mortgage industry professionals;
• To unify and streamline state license processes for mortgage lenders and mortgage brokers.

State agencies announcing their commitment to the System include Alabama, Arizona, Arkansas, Connecticut, District of Columbia, Georgia, Idaho, Indiana Department of Financial Institutions, Indiana Secretary of State, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Dakota, Vermont, Washington and Wyoming.It is expected that the above state agencies will transition onto the System over the 2008 and 2009 time period as full functionality for the System’s release is completed.  Additional state agencies have expressed interest in participating in the System, but are still determining a timeframe for their participation.

”We are proud to announce this initial phase of participating states who are taking a leadership role in creating a unified and modern system of state mortgage supervision”, stated Neil Milner, CEO, CSBS.  ”By announcing their intent to participate, these state agencies will be heavily involved in the initial phase of development of the Residential Mortgage Licensing System.”

”The importance of this initiative is underscored by the number of state agencies indicating their intent to come on the System during the initial phase of development,” commented George Kinsel, President, AARMR.  ”These states are creating the critical mass necessary for state supervision of the mortgage industry to become more uniform, more efficient, and more effective.”

1. I live in a condo and am concerned about buyers attaching second home riders to property just purchased and refinancing current property and using Second Home Riders.  I understand why people would want to do this, but it appears for the most part these investors have no attention of using the unit as a second home as the property becomes immediately on closing, rental units. How much should I and folks like me that use our units as full time homes.  I know property values have gone through the roof, along with taxes. etc.  My area is Ocean front, Resort small Island and our complex contains 65 units with about 60% short term rentals.  We have about three months of busy season and then things slow way done.  Only about 6 full timers.  Our BOD don’t and won’t address this problem of our high % of owners that are renting and ignore what seems to me a dangerous practice of investors manipulating the mortgagee market to get lower interest loans.
   Any advice would be appreciated.  I have met with no success in contacting our state and local government.  I just keep getting deeper and deeper into the
   the morass of government offices and always end up lost.  I want to get more information than I can download from the local county property web site.
   How much do I have to worry in all this.
   I live a great life and it is just a race to the finish to see if I can afford to live here until I die.  Right now it looks as if I may be downgrading in a couple years due to costs of living here.

   Posted by  on  03/03  at  06:29 AM

2. As much as our industry needs this and I would welcome the accountability aspect, I cannot help but think that our noble state legislators will quickly find a way to turn this into a new income stream for the state’s coffers.

   How ironic. We’ll pay them to rob us.

   Posted by  on  03/08  at  01:01 PM

3. I have some seious issues with a lender and would like to know how to find out if they are legal in what they are doung.

   Posted by  on  03/09  at  07:46 AM

4. I have been in this business for more than 27 years. The level of professionalism waxes and wanes. It’s an industry-wide problem. Few mortgage loan officers even know the financial affects of some of the products they push. It’s all driven by “bigger paychecks”. I have lost hundreds of clients to less-experienced loan officers promising something they couldn’t deliver. It all boils down to the golden rule: when acting as a loan officer, do for the client what YOU would want YOUR loan officer todo for YOU! This applies to wholesalers as well. Why help someone buy a home they’re going to lose in the next 12 months? Not smart.

   Posted by  on  03/09  at  03:33 PM