Loan officer skills can vary greatly

In 2002 - 2003 the flood of people interested in making big money in the real estate boom began. These new hopefuls were thrown into the working arena quickly and the market had plenty for them to do. However, many of these loan officers were lacking sufficient skills.

In California there are 2 types of loan officers…those who have a real estate license and those who do not. This is the biggest issue as far as I am concerned. Too many companies opened under corporate licensing (CFL) where a bond is secured by the company allowing them to employ loan officers without licenses. These LO’s operate under a CFL and are not required to be individually licensed. The difference shows up in the skills of the LO. The LO operating under the CFL license typically is directed what products to sell and has very limited understanding of the risk factors associated with loans like Option ARMS.

In conclusion, it is strongly recommended that you ask whether your loan officer has a real estate license. It doesn’t guarantee loan experience but does insure that you are working with someone that understands disclosure and has something to lose….their license.

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