Reformation Industrywide

The Office of the Commissioner of Banks (OCOB), through the 2008 legislative session, instituted changes that impact you in historic ways.

We have entered the license renewal period and I want to clear up some misconceptions and help guide you through the new process. In addition there is a new federal law that requires your compliance as of November 1, 2008.

…It is your responsibility to adapt and comply

Highlights of Changes

The New Financial Responsibilities for Loan Officers need some clarification. Especially regarding the 600 Beacon Score and the issue of working from home. These two new rules have raised the bar of entry into the business and further enforce the proper supervision of loan officers. The new language amended the Mortgage Lending Act (MLA) and the Administrative Rules that guide its enforcement. If you are concerned about what these changes mean to you then click here for clarification.
Transition and License Renewal have entered the final stages for 2008. This year you have a two-step process to renew your license. First, you must transition your data to the National Mortgage License System (NMLS) and secondly, between November 1 and December 31, 2008 you must renew your license. The grace period and penalties for late renewal have also changed. For all the specifics of renewal and what to do now, click here.
The FTC’s new Red Flags Rule requires each financial institution that opens or maintains a “covered account” to implement an Identity Theft Prevention Program as of November 1, 2008. Every mortgage banker and mortgage broker shop, along with more than eleven million other businesses, are required to design and implement a “Program” for their organization. To learn more about what you and your company must do to comply click here.

This Alert is just a small sampling of the widespread changes that are taking place in North Carolina and at the national level.

…You are currently operating under these new regulations

I will be covering these and the other new requirements in depth in two brand new, four hour CE courses:

New Laws for a New Era: NC Mortgage Lending 2008 and Beyond
Security for an Insecure Time: Privacy, Information Security and the Red Flags Rule

In these vital new courses you will learn about 10 new laws and the many changes coming on both the state and national level.

…You will also get your eight mandatory CE credit hours for renewal

To see a schedule of classes and to register click here.

Paul’s Point

Out of Great Change You Discover Your Future

These are historic times we are operating in. Massive levels of change have created uncertainty for all of us. I have looked deeply at our current marketplace and traveled to the recent regulatory conferences for insight into the legislative landscape.

…There is unprecedented opportunity
as well as great peril in our future

Here is what we know is real and true:

1) The Market is in Turmoil and is causing confusion and widespread fear for consumers. Even though this is an incredible buyer’s market, your potential borrowers and your strategic partners are frozen in fear. When people are afraid markets contract.

2) The Credit Industry has Collapsed and banks, lenders and secondary market investors do not trust the primary market to produce investment grade loan packages. Mortgage loans are now perceived as “Risky” which has caused the liquidity crisis at the retail level where we work.

3) Mortgage Regulators have an agenda both at the state and federal level, which is to force us to “Lend Responsibly.” Our regulators have great power and they are using it aggressively to modify our behavior by increasing risks for non-compliance.

We are experiencing more that a credit cycle or marketplace correction. This is a

…Complete Reformation of our entire industry

While you have had your head down this whole year working hard to adjust to these changes and make your living, the game has completely changed. You now need to learn the new rules.

As I see it, the biggest question you need to answer is:

What does all this mean to you and your future?

These challenges are the opportunities of our time and these are the issues we will be discussing in our brand new CE courses available to you right now. Click here for more information.

Join Attorney Scott Green and I for an exploration of the state of the industry and the regulations that will shape your future.

It’s time for your continuing education and I promise you a meaningful day of learning that is:

…Timely, Targeted and Provocative

I am proud to bring you the knowledge you need to navigate these historic times and to protect yourself as you discover the future that awaits you.

I hope to see you in class.

My very best,

~Paul

P.S. Nowhere else will you find the information or expertise we are bringing to a city near you. Click here to find out more.