CHLA Renews its Longstanding Call for Bank Loan Originators to Be Licensed
(Washington D.C.) – The Community Home Lenders of America (CHLA) renewed its request to the Consumer Financial Protection Bureau (CFPB) to require that all loan originators must be licensed, pursuant to Dodd-Frank statutory requirements that all mortgage loan originators must be “qualified.”
“The Community Home Lenders of America renews its longstanding call for bank loan originators to be licensed in the wake of the CFPB’s $12 million fine of Bank of America for their loan originators’ failure to follow certain basic federal laws,” said Scott Olson, Executive Director of CHLA.
In announcing the fines, CFPB noted that “loan officers routinely falsified forms about mortgage applicants.”
In October of 2021, CHLA sent a letter to Director Chopra renewing its call for the Bureau to close regulatory loopholes by requiring bank loan originators to:
- Pass the basic SAFE Act Test,
- Pass an independent background check,
- Complete 20 hours of SAFE Act required pre-licensing courses, and
- Complete 8 hours of SAFE Ac required continuing courses each year.
You can read the full letter here: https://www.communitylender.org/chla-asks-new-cfpb-director-chopra-to-act-on-safe-act-parity/