Utah Mortgage Shoppers Beware

Salt Lake City, Utah Real Estate

Utah Mortgage Shoppers Beware

Utah consumers who want to secure a mortgage loan are urged by Utah officials to be cautious when selecting a mortgage broker. Last year the Utah Division of Real Estate notified all mortgage brokers that they must meet new federal SAFE Act requirements. These requirements include licensing, education and testing requirements.

The deadline for mortgage brokers to meet these requirements was December 31, 2010. It will be later this year before the Nationwide Mortgage Licensing System (NMLS) data is compiled and up-to-date lists are available to consumers. Until the list is available, consumers need to exercise caution when dealing with mortgage companies.

While not the sole reason for the melt down, there were many unqualified and unlicensed mortgage brokers operating during the real estate feeding frenzy. In an attempt to eliminate or minimize fraud, the SAFE Act was established to set standards for state-licensed mortgage loans. Utah was one of the first states to pass a law to enforce the federally mandated act.

As of mid-year 2010, only 5,000 licenses in Utah of 9,000 had registered with the NMLS database. Of those licensees, only 2,000 had finished the education and testing requirements. This leaves a large number of people continuing to work in the mortgage business outside of banks or federally insured companies.

Utah officials are concerned that unlicensed brokers are continuing to do business in the state in clear violation of the law. If caught, these brokers will have their license permanently revoked. Although there may be a drop in the number of licensed brokers in Utah, that doesn't necessarily mean there still won't be unlicensed individuals operating in the state.

These individuals could be the type of unscrupulous brokers that took advantage of the unregulated boom days and wrote fraudulent loans while cheating people out of their money. If you have concerns about the broker you are currently dealing with, ask to see their license.

A list of precautions you should take into account when entering into a mortgage loan agreement is detailed on the Utah Division of Real Estate website.

More real estate articles

You can talk about... Utah Mortgage Shoppers Beware

Tags: • agreement • standards • fraud • testing • education • licensing • requirements • brokers • consumers • utah • loan agreement • mortgage loans • mortgage broker • mortgage loan •

• Foreclosure Rate Still High in Utah (foreclosures)

• <a href="http://article-library.saltlakecity-property.com">Salt Lake City, Utah Real Estate</a>
• <a href="http://article-library.saltlakecity-property.com/mortgage_brokers">Utah Mortgage Shoppers Beware (mortgage brokers); Salt Lake City, Utah Real Estate </a>

Privacy & DMCA Policy -- Sitemap
mortgage brokers Utah Mortgage Shoppers Beware