It is a scary thing to get your first mortgage. Committing to pay off a loan for twenty or thirty years is a major financial milestone. First-time home buyers can be easily overwhelmed by the strange terminology and financial calculations involved in procuring a mortgage. The last thing they want to have to worry about is whether or not they can trust the mortgage officers that are handling their loan.

In order to ease their mind of this worry, consumers should verify that the mortgage broker, bank loan originator, or other similarly titled officer is licensed with their state to handle residential mortgages. This licensing is usually overseen by the state banking department. With the recent implementation of the SAFE Act of 2008 , there is now a national registry where consumers can check the status of mortgage officer licenses.

An officer who is in good standing has probably passed numerous checks on their credit and criminal background. They will have completed the required Loan officer training courses and may have had to pass a licensing examination. Most likely they will be bonded by an insurance company. Established officers will have had to complete continuing education, usually on a yearly basis, in order to renew their license. If you want to know what the specific requirements are for licensing in your state, contact the appropriate state office.

It would be unwise to move forward with any loan officer who cannot prove that they have a valid state license or with one whose license is not in good standing with their state licensing board.

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