Senate approves Van Woerkom mortgage reform legislation to strengthen loan officer requirement laws
LANSING – March 23, 2009 – (RealEstateRama) — The Senate today approved legislation to help ensure that all mortgage loan officers conducting business in Michigan will be registered with the state, said Sen. Gerald Van Woerkom, one of the sponsors of the package.
“Purchasing a home is one of the biggest financial decisions a person can make,” said Van Woerkom, R-Norton Shores. “This legislation will help reassure potential homebuyers that their mortgage loan officer is highly qualified to conduct mortgage loan transactions.”
Senate Bills 379 through 381 expand mortgage loan officer registration requirements to those loan officers who are regulated under the Consumer Financial Services Act.
The requirements are consistent with a reform package adopted last session, including Public Acts 59 through 72 of 2008. The measures created a seven-member Mortgage Industry Advisory Board to review policies for the loan officer registration process; revised sentencing guidelines for mortgage loan officers; created educational and application requirements for becoming a registered loan officer; and developed standards for the registration renewal process.
“The goal of this legislation is to help make individual mortgage loan officers more accountable and responsible when brokering or originating loans in Michigan,” Van Woerkom said. “This is another step in a series of legislative packages that have strengthened the state’s loan officer registration laws.”
The measures will now go to the state House of Representatives for consideration.
