 |
 |
Protect Yourself by Using a Licensed Home Loan Officer
By Sheryl Landrum
CMR Columnist
 E-mail Friend
 Printer Friendly
A headline in the Feb. 12 edition of The Arizona Republic reads "Rules Sought on Mortgage Officers." California and many other states are dealing with the same issue that Arizona is--unlicensed loan officers can prove hazardous to consumers looking for a new home loan.
Protect Yourself and Your Mortgage
Not only have fraudulent home loan practices become an issue in the mortgage industry, but incompetence can be costly as well. When you work with a licensed loan officer you are working with someone who:
- Has passed course(s) in real estate and real estate ethics (which includes home mortgage lending practices).
- Passed a state licensing test.
- Paid a license fee.
- Is responsible for continuing education to keep their license current and valid.
- Has no felony conviction.
- Must report to state regulators when changing jobs.
Currently, in many states including California, this is not the case; some lenders have filled up offices with home loan officers who are not qualified, or educated on lending practices and who can put consumers into risky mortgages with exorbitant interest rates and fees. Whether intentionally or not, if you are the victim of an un-qualified or unscrupulous loan officer, you have little recourse if the loan officer you are working with is unlicensed.
Our home mortgages are one of lifes largest investments. When looking for a new home loan or when refinancing your existing mortgage, make sure the loan officer you are dealing with is licensed and reputable. Get referrals and talk to more than one loan officer; make sure that he or she provides you with a Good Faith Estimate and a Truth-In-Lending Disclosure as well. Make sure that the home loan you are agreeing to is a good one for you.
About the Author
Sheryl Landrum is a senior loan officer with First Capital Mortgage of San Diego, California.
|
 |
|
|
|
|
