Most mortgage brokers set to lose licenses

July 7, 2008

The state is threatening to revoke more than 600 mortgage broker licenses - covering about 70 percent of all existing brokerages - because they haven't passed a new state-mandated test.

Letters are being sent to the brokers warning they'll be cut off as of Aug. 5 unless they pass the test, Secretary of State Todd Rokita said this afternoon.

The test resulted from a 2007 law that aimed to crack down on mortgage fraud . It requires mortgage offices to have a professional with at least three years in the industry who has passed the test.

A notice of the new law was sent to brokers in June last year, and a notice of the upcoming deadline was sent in May.

Although the licenses will be revoked Aug. 5, the brokers were to have passed the test by July 1.

The extended date is intended to give the brokers a final chance to comply, Rokita said.

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