Lender regulations changing for US

In recent years, more states have implemented
loan-officer-licensing legislation in an effort to protect borrowers from abuse by predatory lenders and officers. Although only three states required loan-officer licenses just three years ago, 31 states now have license or registration regulations on the books.
Despite the increased legislation, noncompliance
is rampant. Many mortgage companies are ignoring the laws. Some are openly defying them, funneling all loan officers’ loans through the company’s one licensed loan officer.
The goal of state legislators and predatory-lending groups is to hold loan officers and lenders
responsible for predatory-lending behavior. State-agency enforcement departments are issuing
cease-and-desist orders, revoking licenses and levying fines in an effort to promote compliance
with these laws.
Ultimately, mortgage companies are responsible for getting all their loan officers registered or licensed. The best way to stay in compliance is to file for loan-officer registration
or licenses for each loan officer who brokers or makes mortgage loans in the one of the 31 states. The other option: Risk violations for failure to supervise the licensing of your loan officers.