So, you called “The Bank” the other day figuring that they are the place to get a mortgage.
You figure they have your money, they know you and they’ll give you a loan because they are in your neighborhood and the manager knows you (Not true since all the loans now go to Fannie Mae, Freddie Mac, FHA, VA and USDA).
The manager then tells you to contact Larry Lizzard because he is “registered” with the NMLS, the National Mortgage Licensing System. Larry tells you that his NMLS number is 44444444.
So, you figure that since he works for the bank and has a number, he must have gone through extensive training, background checks, testing, fingerprinting, etc. and can be trusted.
That’s funnier than (insert the funniest joke you ever heard here).
In fact, the way the law if, Larry Lizzard could have been the slimiest mortgage broker that ripped buyers off for years, who could not pass the national and state examination, has a few “issues” in his pass and has never been trained.
On top of that, the bank can charge you what ever they want and not disclose it to you.
Really? Yep. And that’s how the banks want it.
But, a mortgage broker and mortgage banker originator had to go through the aforementioned checks (I will not make the proctology analysis).
Mortgage brokers also are limited to what they can make (to benefit the consumer) and must disclose that amount (since 1992).
Now, after a meeting with someone in a banking department of state that I am licensed in, there is discussion that even the bank loan officers go through the same hell for full licensing.
What will that do? Continue to eliminate the bad eggs in the origination field, bring in new people that will be properly changed and level out (to the detriment of the brokers) the playing field.
But for now, the NMLS number a broker give you (mine is 13975) and the bank person’s are NOT the same.
Fred Glick's Reality 