Related articles:

Licensing of Arizona loan originators hits legislative roadblock

Other articles by Paul Davenport:

AZ Senate OKs proposed budget; House action nextFiling says AZ death method still subject to challenge English- learner changes shelved GOP officials explore options for Flake's spot on Nov. ballot AZ impact debated from California OK of gay marriages State considers a ban on texting while on the road Ruling legalizing gay marriage in CA prompts call for Senate vote hereLicensing of Arizona loan originators hits legislative roadblock Expansion of suit, $40B sought over anti-war T-shirts Napolitano vetoes bill on drunken driving, boating

General
Grocery/Market Mgr-Cafe/Restaurant Mgr Production and Manufacturing
Pioneer Landscaping
Crushing Crew Trades/Construction
Pioneer Landscaping
Yard Person/Loader Operator Driver/Transportation
RENZENBERGER
ROAD AND YARD VAN DRIVERS Mechanical
Pioneer Landscaping
Diesel Fleet Mechanic Trades/Construction
arizona portland cement
maintenance electrician Trades/Construction
Wentz and Patrick Construction
Carpenters & Helpers

PHOENIX — Legislation to require that people who help arrange mortgages for home buyers get a state license has hit a roadblock near the finish line at the Legislature.

Billed as a consumer-protection measure and similar to laws on the books in about 30 other states, the legislation enjoys support in the real estate financial industry as well as Gov. Janet Napolitano's administration.

However, one senator's opposition has prompted Senate Republican leaders to sidetrack the bill (SB 1028) since it was approved overwhelmingly by the House on a bipartisan vote.

The stalled licensing bill is opposed by Sen. Pamela Gorman, an Anthem Republican who heads the Financial Institutions, Insurance and Retirement Committee. She previously declined to hear two similar bills, essentially killing them.

Gorman said she favors having the state establish a voluntary registration system that would help consumers decide which mortgage businesses to patronize.

"A slip of paper called a license doesn't stop somebody from committing a crime, which is what fraud is," Gorman said. "I do recognize this is a serious problem, and I would like to see them (industry groups) work together to fix the problem."

But the bill's sponsor, Sen. Jay Tibshraeny, R-Chandler, said: "Making people accountable and requiring education and more ethical treatment of consumers is something whose time has come.

"I think we're beyond a voluntary registry," Tibshraeny said. "It might sound good, but it doesn't give the consumers the protection they need from unscrupulous dealers because your unscrupulous dealers are not going to register."

The issue is on the Legislature's plate at a time when the mortgage industry has come under increased scrutiny because of foreclosures and the subprime-loan crisis.

The state already regulates mortgage brokers and mortgage bankers, but the bill would require licensing of an estimated 10,000 so-called "loan originators."

Under the bill, originators would have to undergo criminal background checks, pass a test, meet continuing education requirements and stay licensed while in the business.

Originators typically interview customers in connection with a loan application and act as middlemen between lenders and consumers.

"In that relationship, we have seen a lot of abuse," said Felecia Rotellini, director of the Arizona Department of Financial Institutions. She cited identity thefts, sales pitches for inappropriate loans and incompetence of some originators.