NAMB Rocks Cleveland with Model State StatuteMichael SimonNAMB, License, Broker, continuing education
On the morning of June 16, at a special press conference during
the 2002 National Association of Mortgage Brokers Annual
Convention, NAMB 2002-2003 President Armand Cosenza Jr. and
Immediate Past President Joseph Falk publicly introduced the
association's Model State Statute for Licensure, Pre-Licensure
Education and Continuing Education, a comprehensive proposal
to better serve borrowers through an increased commitment to pre-
and post-licensing for mortgage professionals. The statute,
representing more than a year of tireless efforts by the NAMB Board
of Directors, the Delegate Council and a host of internal
committees, including the Model State Stature Task Force, has four
basic principles:
++To establish a basic licensing requirement;
++To establish a pre-licensure education requirement;
++To establish a continuing education requirement; and
++To apply to all mortgage originators.
Mr. Falk, in his last major act before bidding farewell as NAMB
President, agreed to continue the effort, bringing the initiative
directly to consumer groups, such as the American Association of
Retired Persons (AARP) and the American Association of Residential
Mortgage Regulators (AARMR), and state politicians, attorney
generals and regulators, in an effort to eventually push the
proposal through Congress. Mr. Falk had spearheaded the initiative
after he took the presidential reins at the 2001 NAMB Annual
Convention.
In an emotionally-charged speech at the NAMB General Session,
Mr. Falk outlined his motives.
"Crooks, scoundrels, felons and thieves, NAMB gives you fair
warning--get out. We don't want you in our business," he asserted.
"President George W. Bush has outlined his three-point platform for
National Housing Month: 1) downpayment assistance; 2)
affordability; and 3) consumer education. Today, NAMB adds a
fourth."
Following suit with legislative successes in his home state of
Ohio, Mr. Cosenza proceeded to outline a number of surprising
statistics, declaring that, out of nearly 2,000 applicants, more
than 770 have failed the state's recently-implemented initial
background check. "Out of those," he continued, "approximately 150
will be ultimately denied a license. That's 150 potential predatory
lenders who are not going to be operating in Ohio."
With the Model State Statute initiative, NAMB plans to replicate
Ohio's success on a national level.
Upon returning to the podium, Mr. Falk ran down some more of the
disturbing, and often overlooked, statistics that led to the
writing of this proposal:
++Only 15 states require individual licenses for brokers;
++Only 12 states require individual licenses for lenders;
++Only 12 states require continuing education for brokers;
++Only eight states require continuing education for
lenders;
++Only six states require pre-licensure/registration education
requirements for brokers; and
++Only four states require pre-licensure/registration education
requirements for lenders.
"NAMB believes that this initiative will help diminish instances
of predatory lending and improve the overall competency of the
mortgage industry in every state, and NAMB urges each of their 45
state affiliates to adopt the concepts contained in the Model State
Statute initiative," said Mr. Falk. "I am committed to seeing this
matter through to fruition and will personally monitor the progress
of each state."
Calling upon the same convictions that saw him through such a
successful term over the past year, Joseph Falk truly made his
final day as NAMB President memorable and, hopefully, long-lasting
and far-reaching.
For a downloadable version of the Model State Statute for
Licensure, Pre-Licensure Education and Continuing Education,
visit www.NAMB.org.
