The number of individual homeowners devastated by the collapse of the real estate market two years ago may never be fully understood. Many were victim of not just their own dream of a home ownership, but of undereducated and even shady mortgage officers who failed in their role as advocate for their clients. There have always been federal and state mortgage laws designed to promote fair lending practices and ensure that those originating and broking mortgage receive appropriate training and ongoing education in order to be licensed. However, some states had lax guidelines and many unlicensed officers were looking to profit from the skyrocketing real estate market of the first part of the decade.

The last two years have seen the mortgage industry undergoing tough scrutiny from consumer groups, the banking industry as well as state and federal government agencies. There are new licensing and registration standards in pretty much all states as a result of the S.A.F.E. Act (Secure and Fair Enforcement for Mortgage Licensing Act of 2008). The idea is to ensure that all loan officers are educated not just about mortgage law, but also understanding fair lending practices and consumer protection. Approved North Carolina mortgage broker continuing education also require discussion of ethical practices and an understanding of fraud as it applies to mortgage loans.

The new standards don’t just provide training guidelines, they also require listing all active licenses in a national registry, overseen by the Nationwide Mortgage Licensing System . The hope is that the new registry will make it easier for states to crack down on unlicensed brokers as well as make it easier for consumers to quickly ascertain whether a mortgage originator or broker is licensed.