Reference no: EM131896610
Garden State Mortgage Company is a residential mortgage lender licensee based in Toms River, New Jersey. After several successful years, business is booming and the company is expanding rapidly. As a result, the company wants to grow its team. Wendy, a mortgage loan originator licensee who is a partial owner of the company, is tasked with finding some new employees. She quickly hires:
Annie, who spent the last few years working as a registered mortgage loan originator for a bank
Wendy also meets with Marshall, who recently graduated from college and is very interested in becoming a mortgage loan originator. However, he explains that he wants to gain some experience before diving fully into a career as a loan originator. Wendy tells him she has a position that would be perfect for him. She explains that he would have the following job responsibilities:
Communicating with potential borrowers to collect general information
Receiving information and distributing it to the processing and underwriting departments
Collecting information for the processing and underwriting departments
Wendy also says that when Marshall feels more prepared and confident, he will be able to start helping consumers talk about loan products, negotiating loan terms and completing loan application forms.
During this time, Wendy also has lunch with Paul, an old friend who also works in the mortgage industry. Paul mentions that he is looking to leave his current employer, a bank, where he works as a loan processor. He explains that he would prefer to continue working in the mortgage business, but on an independent basis. Paul has been working in the industry for many years, so Wendy is confident that he “knows the ropes” and will make a great addition to the team. Wendy offers Paul a position working with Garden State Mortgage Company as an independent contractor.
Wendy is excited about these four new members of the Garden State team. Things run smoothly for several months; so well that the company, confident in its recent success, decides to expand again. Wendy, who is in the process of obtaining a license for a branch in Edison, is charged with choosing a new location to serve as the company’s headquarters. She decides to designate the Edison location as the principal office for the company.
Now that you've reviewed the Case Study: New Jersey Licensing Concerns, answer the below questions. Be sure to answer all questions!
1. List three things that Annie must do in order to become licensed as a mortgage loan originator.
2. Explain whether Marshall will or will not be required to obtain a mortgage loan originator license.
3. Explain whether Paul will or will not be required to obtain a mortgage loan originator license.