Indiana mortgage brokers face ban
I heard an interesting story on NPR the other night. Unfortunately, it didn’t surprise me.
The story, which you can read a transcript of, said that as many as two-thirds of all Indiana mortgage brokers may lose their licenses. The big problem is that new state regulations require that at least one staff member at every Indiana mortgage brokerage pass a competency exam that allows them to oversee their office.
According to the story, agents from only about 300 of the about 1,000 brokerages have even tried taking the exam.
Indiana’s secretary of state isn’t planning on backing down from the ban. It will be interesting to see if all these mortgage brokerages lose their licenses because of this.
It’s just another fall for the mortgage-brokerage industry. During the housing boom of 2001 through 2006, mortgage brokerages flew high, as borrowers rushed to them in the hopes of getting low-cost mortgage money. Today, though, mortgage brokers are suffering from terrible public relations thanks to the subprime mortgage crisis and the number of bad loans many of these companies passed out.
Like I said, the NPR report didn’t surprise me. A lot of people have jumped into the mortgage-brokerage business with little training. I’m not surprised that they’d shy away from a competency exam.
Tags: Indiana, mortgage brokerage, mortgage brokers, NPRRelated Stories
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