Bills Would Regulate Mortgage Loan Officers

Crain's Detroit Business (02/25/08); Lane, Amy
Mortgage industry groups in Michigan, such as the Michigan Mortgage Brokers Association (MMBA), have thrown their support behind new bills that seek to strengthen the state's Office of Financial and Insurance Regulation and establish a registration process for mortgage loan officers. The state House recently passed a package that also mandates criminal background checks and requires loans officers to pass a residential mortgage lending exam; and Pava Leyrer, chair of the MMBA's legislative committee, says her group has called for such requirements for years. "Unfortunately, it just didn't pick up momentum until you have trouble in the industry," she says. Although final approval of the bills could come this week, Leyrer says loan officers at depository institutions also should be required to register with the state.