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Seals of Approval: Seeking to fight the portrayal of the mortgage broker as the bad guy, a number of groups have created their own quality seals for their members to subscribe to.

Article Excerpt
Whether it is true or not, four words have become closely associated by politicians and the media with the current subprime crisis: "the unregulated mortgage broker." This statement has created consumer trust concerns, which in turn has produced at least three answers from industry groups.

The end result seeks to promote the integrity of mortgage brokers.

All offer qualified brokers and loan officers seals of approval to identify themselves as bona fide, honest professionals to borrowers. All address credentials, including criminal background checks, verification of professional standing as licensed/certified and insured, plus extent of experience and training.

Seals displayed by originators, in signage terms, signal both an endorsement by the seal's sponsor and an openness to verification of credentials to consumers via online research at a seal endorser's website, licensing agencies and even the Better Business Bureau.

First to answer the call for public credibility by responding with a seal of professionalism and ethics code was the National Association of Mortgage Professionals, a new trade association just six months out from launch.

In June, the Irvine, Calif.-based group launched its seal of approval, "The MortgageM" or "MPRO" - both of which are trademarked - to be used to boost the reputations of mortgage industry workers/NAMP members to consumers.

Executive director Scott Keegan said, "What NAMP offers mortgage professionals is an association that gives them validity, legitimacy and education," but differs from other trade associations representing the interests of the broker or banker in that it "pretty much makes them unique because our message goes directly to the consumer."

According to www.namp.org, the organization's official website, "NAMP seeks to promote the public's confidence in its members abilities, ethics and professionalism, and to make them identifiable to consumers by use or display of the trademark or the seal of approval (a capital M with the word mortgage in a slender badge across the letter's middle, all set in a metallic square) or the slogan, 'Insist on the M.'"

Michael LeFevre, the association's chief executive, and Mr. Keegan are the collaborating forces behind NAMP. By being first to offer mortgage professionals a new symbol of trust in a turbulent time, membership has grown rapidly via the Internet.

The NAMP website caters to consumers with services such as a public toll-free help line number, consumer access to an online directory of members listed by state and member name they can use as a quick reference in search of a mortgage professional who best fits their need, and also offers a list of guest speakers and professional mortgage training for certification.

Mr. Keegan points out, "True trade is most important at the point-of-sale" and sees most of the problems occurring at that transaction point. "A better qualified individual there" could handle any problems. He states his issues and initiatives are "to have every member of our organization (his goal is to 1,000 by year-end) licensed, in good standing and pass a background check."

Consumer research can make the borrower better prepared for the mortgage process and a smarter participant. "But consumers will spend 40 minutes on a computer researching the best television to buy," take months or weeks finding the right house, "but will not research a mortgage loan to see if it's a good loan or not. A good mortgage professional does what is beneficial for the customer and keeps them coming back," he said.

NAMP offers "a special validation for originators" and will address the issue of people brought...