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Special Reports
Recruiting And Training
After Long Fight, NYAMB's Education Bill Approved
By Brad Finkelstein
The New York Association of Mortgage Brokers had been trying for 20 years to get
its education bill passed by both houses of the state's Legislature.
Finally, the organization was successful and the bill has been placed on Gov. George Pataki's desk for his signature,
said outgoing NYAMB president Don Romano, at the group's annual convention here. As of press time, the bill still
had not been signed, but Mr. Romano said he was optimistic.
The bill would require that "anyone with direct contact with the consumer" who works at any state-chartered
entity be registered and for the Banking Department to perform a background check, Mr. Romano said.
It calls for anyone registered as a mortgage loan originator in the five years before or one year after having
their registration approved, have completed 18 hours of education courses.
After two years following the initial registration, the MLO must complete another 18 hours of education over the
next eight years. After that, each MLO must complete eight hours of education every four years. In response to
an audience question, Mr. Romano said there was no grandfathering clause.
Mr. Romano said "it is going to be a plus for us" in competing with federally chartered entities. NYAMB
is going to push that by dealing with a mortgage broker, you are dealing with someone who is regulated by a local
authority. "It's not a perfect bill, but a good first step that puts us in the right direction," he said.
John Commons, past president of NYAMB, said there are people that are doing things wrong in the mortgage origination
business because they do not understand. The bill "takes away a whole lot of ignorance," he said.
National Association of Mortgage Brokers immediate past president Jim Nabors complimented the group on the bill's
passage adding, "Education is the silver bullet in this industry." Furthermore all states should have
an education bill "just as strong."
Robert A. Mengani, assistant deputy superintendent of banks, mortgage banking division, New York State Banking
Department, during his presentation, told the audience he hoped the bill will get signed.
The bill, if enacted, will require the Banking Department to maintain a webpage that lists all MLOs who are registered
and in good standing and which company employs the MLO or which firm the MLO is "affiliated" with. Companies
will be required to notify the Banking Department of "any dismissal for cause" of an MLO for alleged
violations of the mortgage statute.
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