the Associated Press | Posted: Monday, December 1, 2008 12:00 am
CHEYENNE - People looking to buy a house in Wyoming are getting added protection against shady mortgage brokers.
State banking commissioner Jeff Vogel discussed draft legislation with members of the Joint Minerals, Business and Economic Development Interim Committee recently in Casper. The bill would modify the Wyoming Residential Mortgage Practices Act to require pre-license tests and education.
Amendments that went into effect this summer require license applicants to undergo a criminal background check. The move allows state officials to identify brokers who may have been convicted of lending fraud in another state.
Every lender must be licensed or registered by July 30, 2009, under the federal Housing and Economic Recovery Act.
Mortgage companies always have been licensed in Wyoming, Vogel said. The national adjustment requires states to authorize individuals to take part in the lending industry.
But the strength of Wyoming's market has kept property values steady even as fewer homes sell, he said.
The state's foreclosure rate is less than 1 percent. By the end of September, 524 properties were under foreclosure.
"That's for the whole state," Vogel said. "If you look at other states, that's one suburb."
But strict licensing requirements will provide additional oversight.
The creation of a National Mortgage Licensing System puts together a database with brokers' lending history.
"This brings uniformity to the process," Vogel said. "We can identify who is doing business with (Wyoming) consumers."
He said that Wyoming's banks use sensible lending practices, which limited the state's exposure to subprime loans that plague other markets.