Is Your Loan Officer Educated and Licensed?

'Do not assume you are speaking with qualified persons.'

Date October 7, 2013 at 2:24 PM

Publication All Things Real Estate Newsletter

Categories Real Estate


As a borrower, do you want to work with a loan officer who is educated and licensed? I am sure the answer would be yes.

The State of New Mexico requires anyone originating loans and/or discussing terms on a residential mortgage to take 20 hours of classroom instruction and subsequently pass a test to get a loan officer’s license. In order to maintain licensure, eight hours of additional classroom instruction per year is required. There is an exception to all of this. For loan officers who work at a bank, they are not beholden to these requirements. They do not have to be educated or licensed — not necessarily the best choice for a borrower.

All loan officers, whether at a bank or elsewhere, must register with the nationwide mortgage licensing system and receive a six digit number that must appear on all solicitations and mortgage applications. This is that loan officer’s unique identifier and is used as a means of tracking that person’s compliance with federal and state requirements.

If you are dealing with an internet company, any persons speaking with you about the terms offered must identify their six digit NMLS number and must disclose they have met the state requirements to originate loans in New Mexico. Also, the company a loan officer is affiliated with must be licensed here in the state. You can confirm this by going to the NMLS consumer access website to see if the person you are dealing with is registered and licensed. It is not unusual for an unlicensed loan officer or company to do business here because of the current lack of enforcement in this environment. Internet companies are notorious for this behavior.

Do not assume you are speaking with qualified persons. Ask for confirmation of their credentials and their company’s compliance with the requirements prescribed by the feds and by the state. This will ensure you are speaking with an experienced and proficient professional.