With all of the advanced warning and instructions we received from the state and many other sources, there can be no gray area when it comes to who has to have a license to originate loans in Arizona and how to get one. This is not the case for some loan officers who continue to ignore the SAFE Act requirements set by lawmakers that took affect on July 1, 2010.
Reverse Mortgage Concepts has received information that identifies loan officers and management of at least one mortgage company in Arizona that continues to do business as usual, without the required licenses. This is particularly disheartening for me, since the requirements were costly and time consuming and had me lying awake at night wondering if and when I would be approved or if I would have to stop soliciting business at a time when I really could not afford to do so. This is also a slap in the face for all of the law abiding loan officers who could be considered to be the cream of the crop after completing all of the requirements and not originating after July 1st until they recieved the license.
I have contacted the Arizona State Department of Financial Institutions many times on this matter and they have assured me that anyone caught originating in the state without a license would be subject to $5000 per day fine per client file. The law is very clear and states that the definition of originating is talking with anyone about loan products, rates, fees and negotiating the sale of these products. That does not mean that a loan officer can take applications or talk to customers about qualifying for loans, while they wait for the state to catch up on the backlog of applications it means, you are done, you are out and you must cease from speaking to anyone about mortgages!
Reverse Mortgage Concepts will follow up with this story to see how these individuals who are clearly breaking the law are dealt with. Will they receive a slap on the hand or will the state actually enforce the laws, this remains to be seen.
The loan officers that are committing these crimes are no better than the ones who lied on loan applications and got us into this mess to begin with. Stay tuned for the results of unlicensed loan officers in Arizona.
Michael Manfredi is a Reverse Mortgage Specialist
Phoenix, AZ 85020
(602) 456-0009
(888) 697-5556
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