NMLS license renewals may get dicey for reverse originators with challenged credit history
If the last few years have taught us anything it’s that mortgage and financial professionals suffered financially with other Americans due to the housing and economic crash. This leaves many qualified reverse originators at risk of not being able to renew their NMLS license due to a poor credit record. That’s right. Honest, hard-working reverse originators, having met educational requirements…many may find themselves unable to continue to originate loans. Should some allowance be made? Are doctors required to have above-average health and not smoke to receive their license to practice medicine? Must every nutritionist have an ideal height to weight ratio? It’s the after effects of the 2008 SAFE Act which sought to reign in mortgage abuse and prevent future problems from questionable loan officers. But have we gone too far? Those dedicated to the mortgage and financial services industry stuck it out to only see their incomes continue to drop and thus may have had late payments or foreclosures that marred their previously good credit scores. I’ve met dozens of such reverse mortgage professionals.
Background check aside (felony convictions, fraud, etc), this seems to be an overreaching requirement that will ultimately harm the seniors we serve. Bad credit does not equal an unethical loan officer just as some with good credit may have questionable ethics. Is this the one-sie-fits-all yardstick by which mortgage professionals will be judged as they seek to continue gainful employment and serve senior borrowers?
We’d like to hear your thoughts below.