MONTGOMERY, Ala. (AP) - The Alabama Senate has approved a bill that would require all mortgage loan originators to have training, pass a test and be licensed by the state.
The bill by Democratic Sen. Bobby Denton of Muscle Shoals cleared the Senate 22-0 Thursday and now goes to the House for consideration. Denton said the bill was prompted by abuses in the home lending industry. He said too many unqualified loan originators had set up shop and taken advantage of borrowers.
His bill requires 20 hours of training before the test. It also provides that no one can be licensed with a felony conviction for fraud, dishonesty, breach of trust or money laundering.