Training can help lenders meet regulatory requirements

OnCourse Learning’s Brett Shively offers advice in Northpointe Bank’s Expert Interview Series

Since the financial crisis of 2008, the regulatory requirements on the financial services industry have increased dramatically because of federal consumer protection legislation such as the SAFE Mortgage Licensing Act and the Dodd-Frank Act.

Given the ever-changing regulations on the mortgage and banking industry, “it is unrealistic to believe any one person could be expected to maintain pace with that oversight without relevant, ongoing training,” said Brett Shively in a blog post from Northpointe Bank as part of its Expert Interview Series.

In the question-and-answer interview, Shively, executive vice president for OnCourse Learning Financial Services, stressed the need for continued training for loan originators so they can stay up-to-date with changing regulations and help clients make good decisions.

He also discussed what consumers shopping for loans can do to avoid putting their investments at risk. This includes seeking out well-educated and professional loan originators and being truthful about their financial situations.

One factor that caused the housing crisis, which began in 2006 and 2007, Shively said, is that many consumers attempted to buy and were given loans to purchase homes they could not afford.

Consumers seeking to borrow money need to be prepared with questions to ask lenders, including verifying their status with the NMLS.

They should ask “how their long-term and short-term financial plans may impact the choice of loan products and the amount of house they can afford,” Shively said in the article.

Continuing education can provide lenders with tools to help their clients understand disclosures and the vetting process regarding their ability to repay the loans, according to Shively.

“Loan originators provide extensive paperwork for a reason, and they should attempt to be certain that the buyer understands them,” Shively said in the article.

For their part, he said, first-time homebuyers should understand “they are making a significant long-term commitment.”

To view the complete interview, visit:

By |2019-11-25T08:09:29-06:00August 12th, 2016|Financial Services|0 Comments

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