Banks enticing originators through fear

by Diana Aqra06 Aug 2013

Industry leaders have expressed concern that originators have not been given a level playing field, with rules governing bank loan officers differing from those governing non-bank originators.

Brian Koss, executive vice president and national head of production for Mortgage Network, a mortgage banker (non-bank) in Danvers, Mass., has argued that licensing laws discriminate against non-bank originators. Koss pointed out that bank loan officers are not required to test for or maintain a state license to originate.

“This puts banks and non-banks on an uneven playing field,” he explained, because banks can apply their own standards for loan originators.

Koss claimed that banks use the discrepancy as a recruitment tool, telling candidates that the need for a license makes it more difficult to work for a non-bank.

Koss criticized lenders for using fear to entice potential employees who could have entered non-bank origination. He expressed concern that potential loan originators in the future may be drawn to banks over non-banks.


  • by Ron Aguilar | 8/6/2013 9:04:30 AM

    "If you can't beat em, join em" What do you think of that? I will change my life before I do that...

  • by Frank Mancino | 8/6/2013 9:17:15 AM

    Mr Koss hits the nail right on the head. At some point, we all need to play by the same regulations and rules at the very least. Whom can this situation be addressed to to make our point?

  • by Jaxin | 8/6/2013 9:19:46 AM

    Bank LO's are required to do mandatory yearly training for compliance and other relative regulations. Non Bank's dont have the joy of being examined by the FDIC, OCC or other applicable regulator in the past. Our bank gets examined and scruitinized by the FDIC and the State every year. So if we dont have our policies, procedures and training documented and practiced, we as a bank are scolded. I have worked for non bank lenders in my career. Just becuase non bank LO's have to take a simple test (that I have taken and passed) does not create an un level playing field. I am glad to see theh CFPB is starting to clamp down on non bank lenders to make sure they are truly on the same playing field as bank's when it comes to regulation and compliance


Is TILA-RESPA a good or bad thing long term?