Comments on: Are Mortgage Loan Originators Professionals?

By: New Orleans Home Mortgage

New Orleans Home Mortgage — Thu, 13 Aug 2009 01:55:51 +0000

Like every industry there are bad apples in every bunch. I’ve seen LO’s walk consumers to the edge then soak them with a smile on their face and a pat on the back. On the other side I’ve seen brokers take a genuine interest in their customer/client lay out a selection of options that were more than competitive. Only to see the borrower go across the street because the lender had their name on a stadium and promoted rock concerts. Sure the borrower over paid some 8k at a minimum. But they felt more comfortable with a name they knew.
Go figure.

By: Jillayne Schlicke

Jillayne Schlicke — Fri, 31 Jul 2009 17:24:18 +0000

Hi Ross,

Yes there were and are plenty of loan originators who lived up to the classic definition of a professional.

They sought out education even though it was not required, they put their client’s interests ahead of their own, the abided by an internal code of ethics, and so forth.

But just because one person says “I am a professional” does not make it so. Subjectivism means any LO could say “I am a professional” and their idea of a professional could be completely different.

It’s when an entire group of people come together and set down guidelines as to what it means to be a loan originator that include ALL the hallmarks of a professional.

Yes continuing education is expensive.

If you look at the history of any profession, you can expect more and more required pre and post education, tougher tests and more rigorous licensing standards.

Being a professional is expensive and requires an investment by that person.

Compare the costs of becoming an LO to the costs of becoming a doctor, lawyer, engineer, CPA.

By: Ross Palmer

Ross Palmer — Fri, 31 Jul 2009 02:06:18 +0000

I agree in the definitions for a professional, I also believe that there are many Loan Originators who live up to the definition.
Although, the licensing structure and continuing education is becoming more inconvenient for the people who do their job correctly. LO’s that have done the right thing are now being punished were more extensive education (which certainly isn’t free) , testing etc. I also think the state should offer free continuing education if they are going to keep increasing it. The NMLS is also a huge money maker, for everyone being so greedy and bringing the market to where it is, it’s funny how they created another system that costs the professional more money.

By: Melissa Morgan

Melissa Morgan — Sun, 21 Jun 2009 05:00:50 +0000

A realtor selling a $2,000,000 property has had to be licensed going back how long? But as a loan officer giving him a $2,000,000 mortgage is not required to be.

I never could understand that one. The loan officer has far more access to view the borrowers financial situation. In most cases this is the largest financial transaction the average consumer has made to this point and should be serviced by a professional.

By: Joe Dahleen

Joe Dahleen — Thu, 14 May 2009 18:22:19 +0000

All mortgage professionals should be:
Licensed
Tested
Must attend education and CE
Must attend some level of skill training (additional certification)

I agree with you was the adverse effect of all of this is that now the mortgage loan originators liability.

By: Raylene Ramos

Raylene Ramos — Thu, 23 Apr 2009 21:48:16 +0000

I believe that this industry is making possitive steps towards regulating LO’s by offering or requiring continued education. It sure helps with our role as a professional to be able to acknowledge and understand possible questions consumers may have. One thing I’ve noticed for myself is that I’m learning alot about fraud and what really goes on out there.

By: Mary McGraw

Mary McGraw — Wed, 22 Apr 2009 00:09:29 +0000

There definately is a big difference between professional and not. I dont believe that knowledge makes you smart…you still have to conduct yourself professionally and be honest about what you know or don’t know.

By: Mary McGraw

Mary McGraw — Tue, 21 Apr 2009 22:34:38 +0000

They should be professionals if they are in that business however i have went to different ones that were not so professional but what i think is a professional someone else might not.

By: Terry Birkland

Terry Birkland — Mon, 06 Apr 2009 17:50:50 +0000

I was not asked to sign a code of ethics, however, I was required to sign an agreement to not solicit or sell insurance or investment products to Reverse Mortgage clients (directly or indirectly.) This had been a source of substantial revenue to my broker.
There is a “power imbalance” in many cosumer areas.
Don’t most of us learn the business from the company we initially work for. This was true for me in the insurance and securities business. Luckily I picked first class organizations.
Lastly, the words “professionalism and professional” implies compentence and care in dealing with the public. A medical doctor is a professional putting the patient uppermost in the service. A LO is someone that can incorportate professionalism in the way they go about their work, they are not professionals.

By: William Platts

William Platts — Fri, 27 Feb 2009 17:47:11 +0000

I have worked as a “professional” in the past. As a LO I do not have professional status in the business sector of America. I may work, act, and be compensated financially as a professional but I am not there by definition. We will not attain professionl status until our industry raised the bar on educational requirements. Also a self-governing body with the ability to sanction members of our industry for violating our precise and easily understandable code of etics must be in place before we can claim professional status. I would love to see this happen. I would be happy to donate a certain amount of my time to make this happen, but until we are all willing to give action not lip service to professionalizing our work place we shall enjoy the status of a non-professional.

By: Teresa Tait

Teresa Tait — Sun, 08 Feb 2009 04:33:01 +0000

As a Loan Officer I would definately like to believe that I am a professional. However, I do agree that this profession is evolving as we speak. I am not sure that we will define our profession as quickly as we would like. I think we are in the early stages and that the entire process will take some time. Until then,we need to continue to educate ourselves,keep current on our licensing and remember to put our clients needs first. A true professional treats others in the same way that he/she would like to be treated.

By: Vladislav Baydovskiy

Vladislav Baydovskiy — Mon, 02 Feb 2009 04:02:20 +0000

Great definition! But I would think that proffesional is someone who takes his or her proffesion seriously, with great care, and attention to client needs. I think big part of being proffesional is being accountable to clients. It starts with small things, like returnig their phone calls, and being available! I know some LO’s who are part time, and the clients are being so frastrated not being able to talk to LO when then need to. And lets face it, getting a loan, especially these days could be nerve racking. I think proffesional is someone who delivers consistancy from time to time, of being the top in helping a client to achive clients goals.

By: Beth Damery

Beth Damery — Wed, 28 Jan 2009 22:07:13 +0000

I consider myself a professional and so do my clients.

Before it was a licensing requirement I attended many educational classes related to mortgage lending ethics and the proper placement of clients into loans that serve their best interest.

I have completed all of the license requirements over the past few years, and know I have more knowledge than a new person entering the field. Maybe this would help new LO’s define themselves and be proud of their profession.

By: Laurie Morgan

Laurie Morgan — Wed, 28 Jan 2009 21:58:48 +0000

So, no doubt I consider myself a professional, and work in the best interest of my clients.

I think education and professional licensing should be disclosed to the consumer. That way I can differentiate myself from the 20 year old credit union and bank “professionals”, who’s education is what? Training by other non professionals? No back ground check, no finger printing to prove they aren’t felons, and no documentable education.

It sure would be nice to not have to compete with non professionals.

By: Mila Usher

Mila Usher — Sun, 04 Jan 2009 18:31:15 +0000

Now my question is once L.O.’s are required to go to school and get licensed will that by definition make them professionals?

And then aren’t they to uphold a new set of laws and ethics?

By: Mila Usher

Mila Usher — Sat, 03 Jan 2009 17:21:32 +0000

I always thought that LO’s were proffesionals.Thank-you for the definition, now I see they are not quite there.

By: Mike Vandenbos

Mike Vandenbos — Wed, 31 Dec 2008 05:18:33 +0000

I like the imagery of “emerging profession”, and would agree. It’s intriguing to reflect on how young our industry is…it was only in the early 1990’s, if i’m not mistaken, that the loan officer/originator vocation really became of age. We are in a young industry and the current crisis will do much to refine our profession.

I appreciate the blog entry above that mentions the legal industry and the stringent requirments for the BAR exam to become a lawyer. Hopefully the licensing requirments for loan officers will continue to become more substantial and relevant to the importance of what we do for our clients.

By: Bartholomew Henning

Bartholomew Henning — Wed, 31 Dec 2008 00:19:37 +0000

I don’t believe any one can put a ‘list’ together to say whether or not you are a professional. I do, however, believe that if you have pride in your workplace, work ethically, earn money, contribute, and know your work – that makes you a professional. Whether you are white collar or not doesn’t stipulate professionality. It’s what you make of your work that does.

By: Kent Kiser

Kent Kiser — Tue, 30 Dec 2008 22:11:39 +0000

The loan officer has to be as you write above “a professional”.
In order to properly point clients in the right direction and guide them through a tenuous process requires a high degree of professionalism. Its like an airplane pilot that is control of your immediate future from start to stop.
I like the feed back clients give me personally when they are gracious at the end and send over new clients.
Self regulation and a professional approach are the absolute keys to success in this business.

By: Benjamin Bergsma

Benjamin Bergsma — Tue, 30 Dec 2008 19:05:04 +0000

I can appeciate being educated ad licensed BUT I find that my brokers in the past and present do not update us on the programs or educate us on them so that we can in turn explaim then in detail to out clients whic I beliee is impariative and necessary for a professional relationahip.

By: Mark Johnson

Mark Johnson — Tue, 30 Dec 2008 17:20:21 +0000

Mark Johnson
510-LO-44600
509-457-1978 (fax)
I feel that a loan officer needs to present himself in a vry progessional way with the borrowers best interest at the core of his/her service. A minimum amount of testsing/experience is a good requirement in becoming a L.O. Belong to professional associations adds credibility as well.

By: William Schornack

William Schornack — Mon, 29 Dec 2008 21:30:01 +0000

I would have to agree that we are professional’s in transition and that we need to be more proactive in writing our own code of conduct before legislators begin trying to write them for us. Like anything else in life, if you wait for the politicians to decide something it always costs more and is less efective than if it were created in the private sector.

By: Yoshiho Takamoto

Yoshiho Takamoto — Sat, 20 Dec 2008 09:32:14 +0000

Great way to define Professional. I do think there are some “Professional” LOs but there are also many greedy LOs who are giving the rest of us bad names. If all the LOs are able to follow the code of ethics and deliver fiduciry duties to our consumers, I believe our profession will soon be considered a “Professional” occupation.

By: Tom Strain

Tom Strain — Tue, 16 Dec 2008 22:09:52 +0000

Wow what a difference between a “professional” in general is defined as vs what L.O. are required to meet as guidlines.

Our profession is lacking. we need all L.O to be licensed and all processors to be licensed and we need mandatory continuing education. There needs to be a mandatory code of ethics that includes “putting the clients best interests first”.

i also feel that we could use oversight into holding our lenders and brokers,whollesalers, and L.o. accountable for the paper we right. i think some formula can be derived to reward those who have good loss ratios- in the form of possibly better cost of funds? Just a thought.

By: Neal Eifling

Neal Eifling — Mon, 15 Dec 2008 22:24:40 +0000

When crossing over the abyss to accept required fiduciary responsibility you have arrive in The Land of Professionals. Every thing is on the line. You have to prove your innocence if called out. It forces you to be aware of your obligations in protecting the client and yourself by doing what is right. You have to know what you preach and teach. No one should be able to hide behind a banks wall from these standards. You talk it! You back it! I believe the majority of loan originators still do not grasp the responsibility and duty of these practices. The higher of reasonable standards set the better. You become more elite in being defined as a professional of your practice. You also grow a greater desire in protecting your industry because of the time you have invested achieving or maintaining your professional status.