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July 18th, 2010
Everyone online is suddenly a real estate or mortgage expert. How do you verify that they really are what they claim?
 You’re looking for a home and/or mortgage, so you’ve started your search online like over 70% of consumers.
There’s so much information, it’s overwhelming.
A simple search like, “Birmingham Michigan Mortgage Rates“, returns 180,000 results!
How do companies and individuals stand out in that big of a crowd?
They all compete to be on the first page of Google as over 90% of those searching Google don’t look further than that.
Does being on the first page of Google mean that company/person is an actual expert or the best one to call?
Not by any means.
All a high Google ranking MAY imply is that:
- that company/person has put out enough content to be noticed by Google. That doesn’t mean it’s good content though!
- the high ranking company/person hired a company to post content for them and do other things to manipulate them to the top – they’ve basically bought there way there.
So how can someone searching the web be sure their search leads them to the right expert?
Read the content associated with the company/person your search leads you to!
- Once you do that, several patterns emerge:
- You’ll see real estate agents that only post listings for sale.
- Other agents may only post sales data.
- Many lenders and loan officers only post interest rates.
- Too many basically just brag about how good they are.
True experts, the one’s you should hire, will show their expertise by doing more than the above.
Think about it this way, you don’t need a real estate agent to find homes advertised online for sale. Information is also readily available online about sales data and trends. Same goes for interest rates.
As I pointed out with the 180,000 search results for “Birmingham Michigan Mortgage Rates“, that’s way too much data to interpret. That’s what you need an expert for.
A true expert will assist you in efficiently and logically understanding what the data means for your situation – whether buying or selling real estate or looking for a purchase or refinance mortgage.
Keep all this in mind the next time you search online for anything.
Experts earn that title, they don’t buy it.
BTW – as I’m considered an expertin my field and use that earned title to improve my Google rankings, I encourage you to check out my blog, website and fanpage to determine for yourself if I’m worthy of being called an “expert“:)
MORTGAGE, EXPERT, MICHIGAN, BIRMINGHAM, BLOOMFIELD, DETROIT, ROCHESTER, ROYAL OAK, TROY
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Drew Sygit: CMPS, CMC, CRMS, CMLO, CALO, MBA, NAMB/MAMP Instructor & Speaker
The most Certified Mortgage Expert in the Midwest
Contact him for The Lending Edge
P: 248-356-3739 • F: 866-215-3755 • dsygit@TheLendingEdge.com • www.TheLendingEdge.com
Posted in Certified, Expert, blogposts | No Comments »
July 11th, 2010
 On July 30, 2008 President Bush signed into law the Secure And Fair Enforcement for Mortgage Licensing Act (SAFE). The first time Loan Originators (LO) have been required to be licensed at the federal level.
The act is meant to enhance consumer protection and reduce mortgage fraud.
The act requires states to license Loan Originators by:
- Passing a written qualified test
- Complete pre-licensure educational courses
- Take annual continuing education courses
- Having LO’s allow their credit to be checked
- Submitting LO fingerprints to the NMLS for criminal background checks via the FBI
The licensing and registration started in 2009.
So how are loan officers doing with the required testing?
NMLS released the following statistics as of June 30, 2010:
What stands out is that 71% of LO’s so far pass the national component part of the test on their first try and 80% pass the state component. That’s a pretty good number.
On the other hand, only 44% of those that retake the test pass the national component. That’s horrible!
What’s this mean?
Well if you take into account that the test really doesn’t change that much on the subsequent retakes it could mean any of the following:
- those retaking the test do poorly with tests
- they’re not very good at studying
- they have no idea what they’re doing to begin with
It’s estimated that the NMLS requirements have led to over half the LO’s to leave the mortgage business in the past year.
Of course, the economy has played a large role in that also.
MORTGAGE, EXPERT, MICHIGAN, BIRMINGHAM, BLOOMFIELD, DETROIT, ROCHESTER, ROYAL OAK, TROY
_______________________________________________________________
If you enjoyed my blog post,
I invite you to connect with me on the social networks below & subscribe to my blog!
“Referrals are Sending Someone You Care about, to Someone You Trust!”
So, forward this blog post to someone that’ll appreciate it!
_______________________________________________________________
Drew Sygit: CMPS, CMC, CRMS, CMLO, CALO, MBA, NAMB/MAMP Instructor & Speaker
The most Certified Mortgage Expert in the Midwest
Contact him for The Lending Edge
P: 248-356-3739 • F: 866-215-3755 • dsygit@TheLendingEdge.com • www.TheLendingEdge.com
Tags: Expert, fraud, Michigan, Mortgage, nmls. test
Posted in Certified, Expert, Fraud, Government, Licensing | No Comments »
March 31st, 2009
Today was the deadline in Michigan for Mortgage Originators to register or be illegal!
On April 1, 2008, the state of Michigan passed a law called the, “Loan Officer Registration Act” (LORA) that required all mortgage originators to register with the Office of Financial and Insurance Regulation (OFIR).
The law was passed to root out the “bad apples” in the mortgage business that helped contribute to the housing crisis by putting people into loans they couldn’t afford. Loan originators working for federally chartered institutions are exempt from the state law, but all brokers must comply.
The state had to extend the original January 1st, 2009 deadline to April 1, 2009, due to some issues with fingerprinting.
What’s interesting is that even with the extension, the number of complying originators was very small. OFIR sent out a memo to all mortgage brokers on February 24th, 2009 titled, “Alarmingly Low Number or Mortgage Loan Officer Registration Applications Received by OFIR”. OFIR noted that they expected 10,000 applications, but as of that date had received less than 1,000 applications with only 55 being approved.
On March 27th, 2009, OFIR sent out a warning letter titled, “Loan Officer Registration, Loan Officer Notification, and Loan Officer Enforcement”, warning of coming investigations and penalties for noncompliance.
So, where are we at the deadline?
Well, as of the close of business March 31st, 2009 OFIR’s website showed only 1,490 mortgage originators are registered to legally originate mortgages in the state of Michigan.
Several consumers recently found out the mortgage broker they were dealing with, Capita Management Group in Southfield, was operating without a license. OFIR issued them an “Order to Cease and Desist” on March 19th, 2009.
So, if you’re looking to buy a home or refinance your existing mortgage, you might want to make sure that the loan originator you’re working with is operating legally.
By the way, feel free to look me up on OFIR’s list of REGISTERED mortgage originators.
Posted in 1-TLE, Certified, Expert, Fraud, Government, Legal, Licensing, Michigan, Mortgage, Mortgage Broker | 3 Comments »
March 2nd, 2009
The State of Michigan is worried as few loan officers are complying with Michigan’s new registration law.
Michigan – Back in April of 2008, the Michigan legislature passed a law called the Michigan Loan Officer Registration Act (LORA).
The law was basically passed to get as many of the bad players out of the mortgage industry as possible. Loan officers now have to do the following to work in the industry:
- Take a 24 hour class if they have less than 4.5 years experience in originating loans.
- Pass a test focused on national & state mortgage regulations.
- Get fingerprinted.
- Pass a background check with no felonies in the last 10 years.
The government set up the registration process late and ended up pushing the original cutoff date back from January 1, 2009 to April 1, 2009. Despite all the talk in industry circles about this registration law since it passed, some are still clueless about it! I spoke with one of my competitors in early February and they claimed to have never heard about the law. What’s scary is that they’ll probably be writing loans illegally after April 1st.
Early numbers on the testing showed over 40% of loan originators failing, probably because they thought the test would just be on products and qualifying borrowers for loans. The test is actually focused on knowing the laws regarding loan origination.
It’s interesting to note that loan originators working for federally charted banks are exempt from the state law and don’t have to register with the state.
I just wish the local papers would do a better job of covering this, so the public would understand what’s going on and ask loan originators to validate they are in compliance.
So few originators are actually registering that the state is worried enough to have sent out the following letter to all mortgage brokers in the state:
JENNIFER M. GRANHOLM
governor
OFFICE OF FINANCIAL AND INSURANCE REGULATION
Department of Energy, Labor & Economic Growth
Stanley “Skip” Pruss, Director
KEN ROSS
commissioner
February 24, 2009
TO: All Mortgage Broker, Lender, and Servicer Licensees and Registrants
RE: ALARMINGLY LOW NUMBER OF MORTGAGE LOAN OFFICER REGISTRATION APPLICATIONS RECEIVED BY OFIR
The Mortgage Brokers, Lenders, and Servicers Licensing Act, 1987 PA 173, as amended, MCL 445.1651 et seq. (MBLSLA) and the Secondary Mortgage Loan Act, 1981 PA 125, as amended, MCL 493.51 et seq. (SMLA) require each mortgage broker, lender, and servicer licensee/registrant to register its individual loan officers with the Office of Financial and Insurance Regulation (OFIR) by April 1, 2009. To “register” as a loan officer means receiving formal notification from OFIR stating that the individual is approved as a loan officer registrant.
I am very concerned with the low number of mortgage loan officer registration applications that have been submitted by mortgage broker, lender, and servicer licensees/registrants pursuant to the MBLSLA and SMLA. To date, less than 1,000 loan officer registrant applications have been submitted in the Nationwide Mortgage Licensing System (NMLS), with only 55 of these applications being complete and receiving formal OFIR approval. Based on past mortgage broker, lender, and servicer annual reports, we estimate that approximately 10,000 loan officers should be applying for loan officer registration.
Each mortgage broker, lender, and servicer licensee and registrant is responsible and is accountable for getting its loan officer registered with OFIR. An individual that is not a registered loan officer is not authorized to be compensated for a mortgage loan transaction originated beginning April 1, 2009.
Violation of the MBLSLA or SMLA by an unregistered loan officer is a misdemeanor, subject to[pb1] fines/penalties and up to 1 year imprisonment[1]. Violations of the MBLSLA or SMLA intended to circumvent the loan officer registration requirements, including utilization/compensation of an unregistered loan officer, can lead to civil fines and possible revocation of a mortgage company license/registration[2].
Links to the loan officer amendments to the MBLSLA and SMLA have been sent to every mortgage broker, lender, and servicer licensee and registrant. Also, OFIR sent each licensee/registrant multiple e-mail and postal mail notifications that provide updated information and instructions regarding the loan officer registration requirements and timeframes.
Loan Officer Registration Deadline
February 24, 2009
So only 55 out of 1,000 applicants have completed the registration, from an expected pool of 10,000! I’m sure the state is also missing the revenue from all this also.
It’ll be very interesting to see how many loan officers get arrested for operating illegally after April 1st.
Will your loan officer be one of them?
Posted in 1-TLE, Certified, Expert, Fraud, Government, Legal, Licensing, Michigan, Mortgage, Mortgage Broker | No Comments »
January 25th, 2009
Changes in mortgage guidelines are occurring at a record pace. Many in the industry are not keeping up, causing painful lessons for consumers.
BLOOMFIELD, MI – Most consumers have come to believe all that matters in getting a mortgage is shopping for the lowest rate & closing costs. Every lender is the same, their expertise & experience mean nothing.
Sadly, this past week three homebuyers found out differently, the hard way.
They all had the same story – after being pre-approved by their lender, they had found a house, signed a purchase contract, applied for a mortgage with their lender, and halfway through the transaction, had their mortgage application rejected.
Each lender also had the same story – they claimed a recent change in mortgage guidelines was the reason for their rejection.
I got involved as they were each referred to me, to somehow save their transactions.
The sad fact was that in each case, the guideline change the lender blamed had actually occurred months ago, not recently, and I could do nothing for their transactions. I did email them proof that the guideline changes had occurred months before and recommended they confront their lenders for a return of their application fees.
Why do these things happen? Don’t all lenders follow the same guidelines? Isn’t getting a mortgage the same everywhere?
From early 2002 until April, 2007 getting a mortgage was very easy as mortgage guidelines were extremely loose. Many lenders joked that if a consumer had a pulse, they could get them a mortgage. People of all backgrounds, with no experience, jumped into the mortgage business for the easy money.
Then the Mortgage Meltdown hit, followed by the Real Estate Bubble popping, the Credit Crunch and the Recession we’re in now.
Today, mortgage guidelines are very different than they were April, 2007. Subprime, Zero Down, No Doc, Stated Income, Option ARM, are all gone along with loose mortgage guidelines.
Many mortgage people that got into the business after 2001 are struggling to adjust to the new lending environment. They’re used to just asking questions about FICO scores, income and assets. They don’t know how to ANALYZE a transaction to even ask the right questions to avoid nasty surprises, much less keep up on industry guideline changes.
Many of them claim to be experts by citing their time in the business, number of completed transactions or their ability to deliver the “best” price. I don’t see how any of that type of “expertise” helped the three homebuyers who got rejected this past week and had their home purchase dreams shattered.
Michigan passed a law April, 2008 requiring all loan originators (except those at federally charted banks) to pass a test by April 1, 2009. The test is heavily weighted with questions on federal & state lending regulations and underwriting guidelines. Many are failing it or are avoiding taking it until the last possible moment.
So, if you’re looking for a mortgage to buy a home or refinance, maybe you should be searching for more than just the lowest rate and fees. Maybe you should be asking loan originators what their credentials are and for proof they’ve passed the state test.
Posted in 1-TLE, Certified, Expert, FHA, FHLMC, FNMA, HUD, Licensing, Mortgage, Mortgage Broker | No Comments »
December 27th, 2008
The Michigan Loan Officer Registration Act (LORA) deadline of January 1st, 2009 proved unobtainable, so an extension has been granted.
December 27, 2008 — BLOOMFIELD, MI – So much for being on the ball. Michigan just turned the Aesop Fable of The Ant & the Grasshopper upside down by announcing a LORA deadline extension on December 8th.
Aesop’s Fable told the story of a lazy grasshopper playing all summer long and making fun of an ant hard at work storing food for the winter. When winter comes, the starving grasshopper begs the ant for some food.
If you were a Michigan loan originator (Ant) that took the original LORA legislation seriously and signed up for the required testing ASAP, you just got the rug pulled out from under you. All those LO’s that procrastinated (Grasshoppers), or didn’t even know about the new legislation, get to laugh at you now for stressing out, studying and taking the test at 8am on a Sunday morning.
For those scratching their heads as to what I’m writing about, the Michigan legislature passed a bill, called the Loan Officer Registration Act (LORA), that Governor Granholm signed into law April 3, 2008. LORA requires Michigan loan originators to register with the Office of Financial Services (OFIR), requires taking a 24 hour class or having 4.5 years of experience, passing a test, annual continuing education, background check and fingerprinting.
The original deadline for all this was January 1, 2009.
A disagreement arose though, with the Michigan State Police concerning interpretation of the fingerprinting and background check requirements. This resulted in the extension announced December 8th pushing the deadline back to April 1, 2009.
The only good thing about the extension was that the legislature took the opportunity to stiffen the requirements a bit more. The FBI will also now be involved in the background check and fingerprinting.
I’ve written before that LORA is way over due. Too many crooks and incompetents got in the mortgage business for the fast cash and took advantage of unsuspecting homeowners, helping to contribute to the current housing crisis. The industry needs a housecleaning! When similar legislation was enacted in Indiana & Ohio, over 30% of the mortgage originators “disappeared”. More need to go. Just this past week, I met a guy who has his own mortgage brokerage and he didn’t even know about LORA. How scary is it, that he could be doing mortgages and not know about state requirements concerning his livelihood?
Overall, the extension is really a shame. All the bad eggs we want out of the business get more time to do more damage. Is it just a coincidence that the new deadline coincides with April Fools Day?
Show your support for higher standards in the mortgage industry by only doing business with those that have already passed the required LORA test. Don’t settle for a verbal verification of this. After taking the test, we all immediately get a printout with our picture on it that tells us if we passed or failed.
Posted in 1-TLE, Certified, Expert, Government, Legal, Licensing, Michigan, Mortgage Broker | No Comments »
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