Loan Officer Compliance Risks

One of the benefits of being a consultant in the mortgage industry is the number of trade association (Mortgage Bankers Association; American Bankers; etc) meetings that you get to attend.  You get a feel for what is really happening in the industry at large.

Currently, one topic that is coming up again and again is the quality of training available for Loan Officers.  When NMLS came into being several years ago, Loan Officer Continuing Education became a requirement.  While that is a good thing, much of the Continuing Education is handled online.  While certainly better than where we were several years ago, it has to be brought up that many of the online courses are repetitive and are not necessarily effective.  Continuing Education is often thought of as something you have to do, not something that should be done for the risk management of a company.

Because of this situation, many companies are moving beyond the online Continuing Education courses and embracing specialized training for their Loan Officers.  This type of course work does not necessarily receive Continuing Education credit, but is geared toward mitigating risk for the lender.  Lenders are conducting these classes in areas such as RESPA requirements for advertising; Compliant Social Media; and Advanced TRID training.  These are all areas where there is substantial risk to the lender for non-compliance and the online training courses, even if they are complete and up-to-date, do not solve the problem.

A good friend of The Commonwealth Group, Jack Konyk of Weiner,Brodsky, & Kider, often sites this example: “If you knew that a pilot had been trained several years ago and had not received any training beyond simple online courses since, would you get on the flight?”  The answer is, “of course not.”  Yet how many times do we see major litigation or civil money penalty assessments taking place due to the actions or in-actions of a loan officer?

If it has been a while since a review of your Continuing Education coursework has been carried out or if you are in need of specialized training for your Loan Officers,  contact West Beibers at The Commonwealth Group for more information at either or by phone at 901-413-6999.

The Commonwealth Group – Consultants to the Mortgage Industry