March 16, 2011

Bank and credit union employees now required to register as mortgage originators

National registration deadline is July 29, 2011

Jefferson City, Mo. - Employees at banks and credit union mortgage departments have until this summer to become registered with a nationwide database, according to new regulations. Federal rules now require residential mortgage originators to register with the Nationwide Mortgage Licensing System by July 29. The rule applies to employees of depository institutions, including national and state banks, savings and loans and credit unions.

Mortgage originators, sometimes referred to as residential loan officers, are often consumers' primary contact at a bank or credit union, handling mortgage applications, payments, account inquiries, refinancing and more.

The new rule is the latest in a series of changes to state and federal regulations governing the mortgage industry. In 2009, Missouri passed a law requiring residential mortgage originators who work for companies other than banks and credit unions to become licensed. These individuals typically work for companies known as mortgage brokers.

The Missouri Division of Finance enforces the law, and began issuing licenses in July 2010. The division now has more than 2,500 mortgage originators licensed. A search of licensed originators and brokers is available on the division's website.

"These requirements bring more accountability to the mortgage lending industry," said Richard J. Weaver, commissioner of the Division of Finance. "Registration and licensing will allow consumers to check the national database to make sure their mortgage originator is authorized to do business in Missouri."

Weaver summarizes the rules for mortgage originators:

  • Those who work for depository institutions (banks, credit unions, others) must register at the Nationwide Mortgage Licensing System website.
  • All other originators must be licensed by the Missouri Division of Finance. More information is available on the division's website.

With licensing and registration, all originators will have a unique ID number, which will remain with them regardless of changes in employment. This will allow consumers and employers to more easily verify the track record of an originator.

About the Missouri Department of Insurance, Financial Institutions & Professional Registration

The Missouri Department of Insurance, Financial Institutions and Professional Registration (DIFP) is responsible for consumer protection through the regulation of financial industries and professionals. The department's seven divisions work to enforce state regulations both efficiently and effectively while encouraging a competitive environment for industries and professions to ensure consumers have access to quality products.