Bill Seeks Licensing for Loan Originators

(STATE CAPITOL, PHOENIX) Following up on his successful mortgage fraud legislation that passed last year, Sen. Jay Tibshraeny, R-Chandler, is introducing another bill aimed at protecting Arizona homebuyers by requiring that all loan originators not just mortgage brokers and mortgage bankers - are licensed. "This is phase two of my mortgage fraud legislation that brings another layer of accountability into what is for most people the most important investment of their lives," Tibshraeny said. Tibshraeny likens his proposal to the real estate industry licensing real estate agents. Senate Bill 1203 will require a pre-licensing course of study, a licensing examination, and continuing education for those who sell mortgages over $5,000 secured with a lien. "Unfortunately, in this housing market decline, many families have lost their homes or are in danger of foreclosing because the loans they have are not well-suited for them," Tibshraeny said. "Bringing higher levels of professionalism and ethical standards in a more formal approach will help protect consumers."