The CEO of the nation's independent mortgage company is urging federal and state regulators to extend an August 1 deadline for loan officer licensing approvals due to processing delays at state agencies.
"They have thousands and thousands of applications and in some cases they have one person processing those licensing applications," said Bill Emerson, CEO of Quicken Loans, Livonia, Mich.
Starting August 1, the federal 'Secure and Fair Enforcement for Mortgage Licensing Act' requires loan officers to be licensed in each state where they originate loans. Otherwise, they cannot work with borrowers.
Based in Livonia, Mich., Quicken originates loans in all 50 states and is the 6th largest retail mortgage lender, according to figures compiled by National Mortgage News.
Emerson told reporters that the August deadline will not impact his firm as much as others because Quicken takes a "very proactive approach" to compliance."
But he warned that over the next 90 days licensing delays in 18 to 20 states will have an impact on the industry and consumers.
Speaking at a U.S. Chamber of Commerce forum in Washington, he said, a 60-day extension of the deadline would be helpful. He noted the loan officers have passed the required tests and filed their applications on time. But they won't be able to originate loans if their applications are not approved, he said.
