January Luncheon - Jim Pledger

Note: What follows is a summary of the presentation. Members can view the complete text by clicking here. If you are not a member, consider joining by by clicking "Signup to Become a Member" at the left. If you have forgotten your userid/password, please call Sherry at 972-390-8505.

At the DFWAMB's monthly luncheon on January 18, the former TSLD Commissioner addressed a group of about 75 mortgage brokers and associates. It was very informative and instructive for the broker community. Mr Pledger addressed the need for Brokers to become educated in their profession by taking better courses and possibly more courses if done with quality. He also addressed the issue of a mandatory bond for all mortgage brokers, the cost of which could be substantial and the effectiveness questionable.

There were other issues regarding some of the 'Do's and Don'ts ' of being a mortgage broker, such as responding to your customers clearly and in writing as well as being responsive to agency requests. Delays are contemptuous to all parties.

Mr. Pledger also went over several of the aspects of the recent response to the Legislature and the Finance Commission to make changes in the current Mortgage Broker statue. One alarming fact that surfaced was the recent proposal by the TSLD Commissioner to expand their jurisdiction to impose severe penalties on Mortgage Brokers for the actions of Loan Officers doing unrelated work to the loan origination process. If the Loan Officer were selling vitamins or pool repairs as a second job and obtained a suit or claim in that unrelated activity, the Mortgage Broker could be liable. This was passed by the Finance Commission and was not opposed by any of the Commissioners. This appears to be yet another penalty possibility to the Mortgage Broker Industry.

The former commissioner further illustrated the facts of some brokers that serve in dual capacity as a Realtor and broker and that the required disclosures should be signed by the buyer and seller if need be. This is a precarious position in which to place oneself even though the law permits it. He described several cases throughout the presentation illustrating several points. There were an abundant amount of questions by the attendees and at times a spirited dialogue. The area of 'expanded jurisdiction' of the TSLD heightened the dialogue.

This was very informative and educational. It set the tone for the up and coming speakers and luncheons.

To see the entire text of Mr. Pledger's presentation, click here.