In Washington State, mortgage brokers and loan officers now need to be licensed. Beginning in January of 2007, loan officers needed to submit fingerprints and undergo a background check. Sometime last year they also needed to pass a competency exam and complete some continuing education.
At the end of 2006 there were approximately 18-19,000 loan officers. 13,722 applied for the license, and by the end of last year, only 5,720 had successfully completed the entire process. Part of this is due to the slowing industry, but I wonder if some are still operating without a license.
Any advertising by a loan officer must list their license number. The Department of Financial Instiutions (DFI) is advising consumers to verify the status of loan brokers or originators either online at http://dfi.wa.gov/cs/list.htm or by calling 877-746-4334.
