Will LO Licensing ‘Parity’ Ever Happen?

Late last week National Mortgages News reported that although mortgage employment was essentially flat in May, that loan brokerage firms have been hiring. But as we report today, a big stumbling block to richer brokerage hiring remains: finding LOs who are licensed and “ready to go.” As the Consumer Financial Protection Bureau weighs drastic changes to how mortgage bankers (bank and nonbank alike) can earn a living, at the very least it would be nice if the agency required that all LOs be licensed -- regardless of charter. Currently, bank LOs get a pass from the federal government on licensing. In theory, this gives an advantage to nonbanks who can brag that, “Hey, at least our origination professionals have passed sanctioned, state tests.”