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Sachcan9
Cherry Bomb


Joined: 02 Nov 2007
Posts: 161
Location: woodland hills

The new Safe Act and how it affects us all
PostPosted: Tue Jan 05, 2010 11:32 pm Reply with quoteBack to top

hey everyone,
looking to see some comments on the new requirements for the SAFE act in regards to mortgage loan originators. As far as I know, here in CA the new law requires us to:
1. register in a new national database
2. have met certain continued education requirements (TBD)
3. pass a state and federal exam (not counting the salespersons exam)
4. authorize a credit check to be performed on us

Now I personally am fine with all of the above but I think its also very excessive (especially the credit check part). Anyone else have any insight or feelings about this?
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Robin
Sentinel


Joined: 30 Aug 2007
Posts: 3416
Location: Loveland, OH

Re: The new Safe Act and how it affects us all
PostPosted: Tue Jan 05, 2010 11:57 pm Reply with quoteBack to top

How do you feel it is excessive? Nationalizing the core education, licensing and registration of loan officers is one of the GOOD things that has come out of all this. As for the credit report provision - would you want someone with a 450 score advising you on the biggest credit transaction you'll likely undertake in your lifetime? It makes sense. Far as I know, the score requirements are set by individual states and can be appealed on a case-by-case basis (in other words, not set in stone as a guideline).
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Emerald
Cherry Bomb


Joined: 12 Aug 2009
Posts: 179
Location: California

Re: The new Safe Act and how it affects us all
PostPosted: Wed Jan 06, 2010 12:20 am Reply with quoteBack to top

Robin wrote:
How do you feel it is excessive? Nationalizing the core education, licensing and registration of loan officers is one of the GOOD things that has come out of all this. As for the credit report provision - would you want someone with a 450 score advising you on the biggest credit transaction you'll likely undertake in your lifetime? It makes sense. Far as I know, the score requirements are set by individual states and can be appealed on a case-by-case basis (in other words, not set in stone as a guideline).


The Credit issue as long as it is case by case I can understand. CA has been one of the hardest hit as far as the Real Estate Market so everyone from Real Estate Agents to Escrow have been financial hit. Not everyone has a 800 fico score. I don't agree that "CA" has been the problem as many in the forum do. It was a "stated" problem for us here in CA that allowed RE agents to keep raising the pricing. Having said that I would be all for backing this new law except that once again the Banks have bought their way out of licensing their employees. So we have different standards again. That's the sore spot for me. How come the RE Agents don't have to go through this? Or are they already licensed Nationally through CAR?
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Sachcan9
Cherry Bomb


Joined: 02 Nov 2007
Posts: 161
Location: woodland hills

Re: The new Safe Act and how it affects us all
PostPosted: Wed Jan 06, 2010 12:36 am Reply with quoteBack to top

Robin,
the part about this being excessive or "unfair" was in reference to the fact that retail loan officers dont need to abide by this. So as for your comment about having someone with a 450 score working on a loan for me, I am sure there are plenty of retail LO's that have very poor credit scores that have been making loans for years and wont be affected by this.

I guess I am just saying that I want a level playing field.
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StephenF
Nitroglycerin


Joined: 08 Dec 2007
Posts: 981
Location: New Jersey

Re: The new Safe Act and how it affects us all
PostPosted: Wed Jan 06, 2010 12:46 am Reply with quoteBack to top

Quote:
As for the credit report provision - would you want someone with a 450 score advising you on the biggest credit transaction you'll likely undertake in your lifetime? It makes sense.


I guess I would not want a mortgage from an originator who rents either Shocked

    I wouldn't go to a pediatrician who does not have kids
    I would not listen to the comments about a sport from someone who never played the game...
    I wouldn't want a divorce attorney who has not been divorced
    I wouldn't want a President who does not have expierence...uh oh Wink


The list could be endless, please feel free to add to it

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Robin
Sentinel


Joined: 30 Aug 2007
Posts: 3416
Location: Loveland, OH

Re: The new Safe Act and how it affects us all
PostPosted: Wed Jan 06, 2010 12:59 am Reply with quoteBack to top

StephenF wrote:
Quote:
As for the credit report provision - would you want someone with a 450 score advising you on the biggest credit transaction you'll likely undertake in your lifetime? It makes sense.


I guess I would not want a mortgage from an originator who rents either Shocked

    I wouldn't go to a pediatrician who does not have kids
    I would not listen to the comments about a sport from someone who never played the game...
    I wouldn't want a divorce attorney who has not been divorced
    I wouldn't want a President who does not have expierence...uh oh Wink


The list could be endless, please feel free to add to it


Why would renting be a factor? I did not say that. Given we're supposed to understand, educate and advise borrowers in matters regarding their credit, it only goes to follow we should personally set an example... and a good one.

You left the door wide open with the rest of those... and I personally would adhere to all the examples given except the pediatrician who has extensive education in general medicine, and the attorney also with extensive education who's personal situation or experience should have no bearing on their interpretation or application of the law. (Don't go there if you're thinking Sotomayor - that belongs on another discussion). Both the pediatrician and the lawyer have ethical guidelines as well, enforced by their peers. I'm not saying it's a perfect system, but it far exceeds anything the mortgage industry has ever had.

Just my .02
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StephenF
Nitroglycerin


Joined: 08 Dec 2007
Posts: 981
Location: New Jersey

Re: The new Safe Act and how it affects us all
PostPosted: Wed Jan 06, 2010 3:22 am Reply with quoteBack to top

Quote:
would you want someone with a 450 score advising you on the biggest credit transaction you'll likely undertake in your lifetime?


Is what you said...you in fact said nothing about renting. But I think it should be mandatory that anybody who is going to advise me on the purchase of a home (a/k/a "the biggest credit transaction you'll likely undertake in your lifetime") The person avising me on the financial aspects of a home should own a home and have gone through the process as well. H e l l all realtors should be homeowners in order to be qualified to sell a house...how bout that idea?

If I am goinig to take my advice from a good credit score (which I would imagine is subject to change) Then logically only someone with a mortgage should be able to tell me about a mortgage. Here's another one to think about, All Bus Drivers & Cabbies need to post their driving records on the dashboard, afterall they are transporting the most important thing in my life; me and or my wife & children..Just my .02

As for these items

Quote:
(Don't go there if you're thinking Sotomayor - that belongs on another discussion).
I was actually thinking the Messiah Mr. Obama himself. That thread has been shut down by Robert Gibbs, CNN, Keith Olberman & Chris Matthews, and mainstream media et al Shocked

And I gues I cannot listen to Bob Costas or Bryant Gumble with regards to sports as neither have ever "played the game."

Again, my .02...I agree with licensing and education, but when/if a blanket rule is set with regards to a persons credit score I believe this is a slippery slope. When exactly does it end?? There are just too many variables that contribute to one's credit score; illness, injury, loss of wages etc. IMO this is a discrimination suit just waiting to happen.
(and not racial discrimination for those who are looking for any opportunity to open that can of worms)

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“During times of universal deceit, telling the truth becomes a revolutionary act”
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EXmtgbkr
Nitroglycerin


Joined: 16 Apr 2007
Posts: 643
Location: Cincinnati

Re: The new Safe Act and how it affects us all
PostPosted: Wed Jan 06, 2010 7:41 pm Reply with quoteBack to top

Step One

Lose your job, no fault of your own

Step Two

Cannot pay your bills

Step Three

Everyone checks your credit before hiring you

Step Four

You cannot get a job because of your credit

Step Five

You finally get a job, but garnishment gets you fired

Repeat, Repeat, Repeat

Drop out of the job market and sponge off the gubmint


I am starting to not blame these people....

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Stupid doesn't know it.
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MortgageDrummer
Dyn-o-mite!


Joined: 19 Nov 2008
Posts: 310

Re: The new Safe Act and how it affects us all
PostPosted: Wed Jan 06, 2010 7:46 pm Reply with quoteBack to top

Robin wrote:
How do you feel it is excessive? Nationalizing the core education, licensing and registration of loan officers is one of the GOOD things that has come out of all this. As for the credit report provision - would you want someone with a 450 score advising you on the biggest credit transaction you'll likely undertake in your lifetime? It makes sense. Far as I know, the score requirements are set by individual states and can be appealed on a case-by-case basis (in other words, not set in stone as a guideline).


Ok, Nationalizing education, lic, and register LO's perfect! I also heard someone say that case by case they will make allowance for some bad credit scores depending on the situtation.

Well, let me tell you how many bad credit scrored clients that I turned into homeowners that no one else would spend the time with them to get their scores up and turn them into buyers . . . My husband would flat out ask our clients. . . "you have 4grand a month coming in , why can't you make your car payment?"

Classic example of someone in our industry (never sold used cars by the way) been in the business 18 years, had a 776 score in Feb. 09'

Guess what it is now? We did own real estate, a home and a rental house. and my husband 2 sub-divisions. . . Puh!!! So, because my credit score is certainly not that now. . .!!!

So, Am I not a good canadate to originate loans? How long have you been in the business. . . do you know anyone that has filed bk?

ASK THEM HOW THEY FEEL ABOUT LOOSING EVERYTHING!
Crying or Very sad Mad Embarassed Evil or Very Mad
Now you want their job too?

"Remember, you can't teach ethics or regulate honesty!" Surprised
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Snets
Nitroglycerin


Joined: 12 Nov 2008
Posts: 875
Location: Palm Beach County

Re: The new Safe Act and how it affects us all
PostPosted: Wed Jan 06, 2010 8:01 pm Reply with quoteBack to top

Drummer - I absolutely think you should be in our business - I'm sorry for what has happened to you and hope that you will have no trouble getting a license. This is really going to be an interesting year!
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