Thursday, May 02, 2002

State regulating mortgage brokers




By Jeff McKinney, jmckinney@enquirer.com
The Cincinnati Enquirer

        A new Ohio law requiring mortgage brokers to be licensed will be better and safer for consumers, industry executives say.

        As of today, loan officers who work for mortgage brokers must be licensed by the Ohio Department of Commerce's Division of Financial Institutions. Brokers charge fees for bringing together borrowers and lenders.

        There are about 1,100 mortgage-brokerage companies registered in Ohio with about 2,000 loan officers and almost 3,000 loan-officer applications pending.

        “This law benefits Ohio consumers by ensuring that qualified and licensed people are serving as brokers for their mortgage loans,” said F. Scott O'Donnell, Ohio's superintendent of financial institutions.

        Dan Brady, owner of Tristate Mortgage in Montgomery and a 21-year mortgage executive, said the law means individual loan officers will have to get licensed.

        Among the qualifications to get licensed: taking six hours of continuing education, successfully completing a mortgage broker's test and having a background check. Individuals with a felony conviction cannot become licensed.

        “It's great news for consumers, because it means they'll be dealing with qualified mortgage professionals,” Mr. Brady said.

       



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