enhance consumer protection and reduce fraud by establishing minimum standards for mortgage loan originators. All state licensed and federally registered mortgage
loan originators must be registered with the Nationwide Mortgage Licensing System.
Many states differentiate between mortgage loan originators, mortgage loan servicers and mortgage loan brokers. There are additional classifications of licensing requirements
for commercial versus residential loans. Furthermore, many state licenses are subject to annual reporting requirements to ensure ongoing compliance.
Fraudulent and abusive lending practices in the mortgage market have lead to a spotlight on regulation and enforcement in this industry. Companies that attempt to evade state
licensing and consumer protection laws by using illegal lending schemes are at risk for serious penalties and may be shut down by the state. Penalties range from large fines,
civil law suits, to possible jail time.
Seven New Jersey companies cited for offering loan modification without a license
Make sure lenders are licensed