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LO Qualifications

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  • #4014
    wp27
    Participant

    The commentary for LO Qualifications seems to give a safe harbor for determining whether individuals meet the financial responsibility standards… it says,

    “2. Written procedures for making determinations. A loan originator organization that establishes written procedures for determining whether individuals meet the financial responsibility, character, and general fitness standards under ยง 1026.36(f)(3)(ii)(B) and comment 36(f)(3)(ii)(B)-1 and follows those written procedures for an individual complies with the requirement for that individual. Such procedures may provide that bankruptcies and foreclosures are considered under the financial responsibility standard only if they occurred within a recent timeframe established in the procedures. Such procedures are not required to include review of a credit score.
    Paragraph 36(f)(3)(iii).”

    It seems a little risky to me especially to set any guidelines as far as bankruptcy. Do you think it is a good idea to set these specific standards or to evaluate each one individually?

    #4018
    rcooper
    Keymaster
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