The Community Home Lenders Association (CHLA) sent a letter to the CFPB urging them to enforce bank mortgage originators to meet the basic testing and continuing education requirements as licensed loan originators. Currently, these standards apply to only non-bank mortgage originators that require them to pass the SAFE Act test, undergo a background check prior to employment and complete at least 8 hours of continuing education each year. The letter states, “We believe that it is important – both for the integrity of the profession of mortgage originators and for the consumers that they serve – to have high uniform standards that apply to all mortgage originators, regardless of whom they work for…” The letter also identifies that there are 1,415 registered mortgaged originators working at banks and other depository institutions that failed and never passed the SAFE Act test and should not be considered as “qualified” originators. The letter also points out that if registered bank mortgage originators were forced to take the exam, anywhere from 36,000 to 120,000 may fail it. All other individuals in the real estate and mortgage industry including real estate brokers, appraisers, home inspectors, and nonbank mortgage originators are all subject to licensing, testing and continuing education, which make bank employees an exception to the rule.
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