How do you become a mortgage broker? - Posted by jturner

Posted by Jim Kennedy - Houston, TX on March 30, 2000 at 10:19:31:

RESPA = Real Estate Settlement Procedures Act
A federal statute enacted in the mid-seventies.
Only applies to 1-4 unit residential property.

Best of Success!!

Jim Kennedy,
Houston, TX

How do you become a mortgage broker? - Posted by jturner

Posted by jturner on March 26, 2000 at 17:11:45:

I was just curious, is there a school or some type of training that one can attend before trying to get a mortgage brokers license? I live in Missouri, and I looked on our government website, but I couldn’t find any information. Thanks in advance!!

Jason

Re: How do you become a mortgage broker? - Posted by Craig

Posted by Craig on March 27, 2000 at 08:24:25:

www.ecodev.state.mo.us/finance.slregs.pdf

There are 41 pages in this document, you have to scroll most of the way to the bottom to get to the Residential Mortgage Broker licensing regs. If you are just getting started you might consider working for someone else for a while.

Re: How do you become a mortgage broker? - Posted by Wally

Posted by Wally on March 26, 2000 at 23:50:30:

I live in nys and did some research a couple of years ago. If my info is correct, you pay a licencing fee. you are allowed to create up to 4 mortgages a year with out having a licence. check your states requirements. wally

Re: How do you become a mortgage broker? - Posted by ali

Posted by ali on March 26, 2000 at 23:16:44:

every state has different rules for mortgage brokers, till dec 99 state of texas didnt have broker or loan officer licence but if you want loan officer licence u have take class like RE agent for broker license you have to be loan officer for 3 years of 11/2 years plus and finance degree.
check with ur state for licenseing

ali

Re: How do you become a mortgage broker? - Posted by Chris in AL

Posted by Chris in AL on March 26, 2000 at 22:47:15:

Right now, I am taking a RE licensing class for the State of AL. Our instructor has brought it up several times that you don’t need any sort of training of licenses to be a mortgage broker. He sees it as a negative, of course, because the broker can offer his clients some of the same services, but doesn’t have to follow the disclosure rules, or follow the Code of Ethics requirements so closely.

Re: How do you become a mortgage broker? - Posted by Tobe (ID)

Posted by Tobe (ID) on March 26, 2000 at 21:59:08:

Here is how I did it. I went to buy a fixer-upper from a guy and needed financing. I looked up a brokerage in the yellow pages and made an appointment to see the loan officer (who also owns the brokerage). He was so impressed with my persistence and enthusiasm that he offered me a job. That is a true story. No special education, classes, degrees, or anything. I don’t know if that helps you or not, but it worked for me.

Tobe

Re: How do you become a mortgage broker? - Posted by Sheik

Posted by Sheik on March 27, 2000 at 06:41:50:

Wally:
Iam also in NYS.
Could you elaborate a little on what you mean by ‘creating’ only up to 4 mortgages per year without a license?

What about an owner/seller of a property offering to finance the sale? Is there a limit of how many of these can be done?

Thanks
Sheik

Idaho is just a clean state - Posted by IdahoRob

Posted by IdahoRob on March 28, 2000 at 01:15:26:

Hi Tobe:

It is possible that idaho did not get hit with corrupt mortgage brokers like some states did some 10 years ago.
In Washington state for example in 1990 there was no license fee test or bonding like today.— Caused by a couple guys in the puget sound area taking up front fees and then prentending to process–but not, and pocketing the up front fees.
So feel yourself lucky Tobe –
Good investing to you
Rob Harris

Re: How do you become a mortgage broker? - Posted by jturner

Posted by jturner on March 26, 2000 at 22:22:15:

You don’t have to be licensed to work in The brokerage office?

Re: How do you become a mortgage broker? - Posted by wally

Posted by wally on March 27, 2000 at 08:08:43:

I was doing research for a note business i was trying to start and was looking up the state statutes reguarding the regulations. What i found was that if you were going to be in the business of setting up mortgages for people you could do as many as four mortgages with out having to get a licence by paying a fee of $1000-2000. The law seemed to give you breathing room to get a few deals under your belt for what ever reason. as far as i know there is no limit on the number of notes you can create in nys if the property is your own. thanks…wally

Re: How do you become a mortgage broker? - Posted by Mark-NC

Posted by Mark-NC on March 27, 2000 at 07:18:46:

Sheik,
I am not exactly sure what the license requirments are in NY . But it is hard to beleive you can do up to 4 a year with out a license.

I Think what he may be refering to is the fact if you are going to do owner finance situations. In the IRS eyes you will go into dealer status if you do more than 4 or 5 a year. Once you get to that point, you will just have to provide Respa Docs on your deals to satisfy that status.

Mark

Re: How do you become a mortgage broker? - Posted by Sheik

Posted by Sheik on March 27, 2000 at 07:29:03:

Hi Mark;

My thoughts exactly. Since I am owner financing these deals (I am not lending money), I shouldn’t be limited on how many I can do.

Regarding the RESPA thing, could you elaborate on what the Respa docs are and how do I comply?

Thanks
Sheik

Re: How do you become a mortgage broker? - Posted by Mark-NC

Posted by Mark-NC on March 27, 2000 at 09:22:50:

Hey Sheik,

The Respa Docs I have to Use for my Note Deals Include;

GOOD FAITH ESTIMATE. This Form is supposed to be presented to the buyer within 3 days after signing the 1003 credit application. It basicly reflects the estimated charges that the buyer is likely to incur at the settlement of a loan.

FEDERAL TRUTH-IN-LENDING DISCLOSURE STATEMENT, This form is signed at closing by the buyer. It spells out the terms and charges of the loan, like the annual percentage rate, finance charge, amount financed, total amount of payments ect.

On a Note deal (because the Note is sold) I also have to provide a form called a SERVICING DISCLOSURE STATEMENT. This basicly says that You are not going to service this loan and you have the right to assign or sell it and any other loans.

I can fax you a blank copy of these if you wish.

Mark

RESPA - Posted by B.L.Renfrow

Posted by B.L.Renfrow on March 27, 2000 at 09:22:32:

Hi Sheik,

I forget exactly what the acronym stands for, but those are the documents required under the Truth in Lending act. You know…the ones which say, “The amount of money borrowed is xxx, your interest rate on a yearly basis is xxx, the total amount you will have paid in interest when this loan is paid in full is xxx,” and so forth.

Brian

Re: How do you become a mortgage broker? - Posted by Sheik

Posted by Sheik on March 27, 2000 at 10:07:33:

Thanks Mark;

I sent you eamil.

Sheik