Are certain banks really preventing their residential loan officers from getting licensed? It’s an interesting question -- one we’ve been researching for the past month. So far, we’ve talked to a handful of mortgage professionals who told us that yes, certain banks have placed language in the contracts of their LOs preventing them from getting licensed. To date, few sources are willing to go on-the-record. The obvious question boils down to this: why would a bank do something like this? Answer: so their top LOs don’t bolt for a better offer from a nonbank. As we reported recently, some LOs have told us they can earn twice as much by working at a nonbank. Keep in mind that 2013 might be a tougher origination market, one that shifts focus from refinancings to purchase loans. Regardless of what is – and isn’t – in a contract, the best loan officers will be those with close ties to Realtors and homebuilders.
