PLM.....What is that?

So, for the past few years, I have been getting most of our family's income from helping multiple families with their Mortgage needs. (I have done well over 200 loans) Purchases, Refinances, Debt Consolidations, Rehabilitations, most everything that you can do with a home financing I have done.

I've been doing that for almost 5 years now, and during my most recent change from one broker to another (I've been at 5 different brokers now over the past 5 years, changing to each one for different reasons,) the owner of the brokerage (Dennis Porter, who owns Sun Valley Mortgage) said that those of us who qualify to get our PLM license (Principal Lending Manager) should go ahead and do that. So I decided that I probably would go about and do that. It would provide them with a great education about the industry, and also would provide opportunities to those with licenses to further progress inside of Sun Valley Mortgage. (Sun Valley Mortgage is heading in some exciting directions!)

For those of you who don't know, here is a brief lesson. : )

Obviously, to do mortgages, you need to be licensed. (Unless you are with a bank or credit union, then you don't (they have a federal exception)) On May 1st 2006, a law was passed by the State of Utah, that said that the mortgage industry needed to have more responsibility tied to it, and so they mandated that every company needed to have what they deemed a Principal Lending Manager. (PLM) The PLM could, (in a very real sense) be held personally liable for any action of any of their Loan Officers that they were managing. This requirement made the responsibility for acting ethically, and not comitting loan fraud lay directly on the shoulders of the Management of the Brokerage. So, of course the management of each brokerage clamped down hard to make sure that thier back-ends were covered.

Here's the clincher. You don't get any extra money for having your PLM license. You actually are more liable if you are the PLM. But, state mandate says that each company MUST have a PLM in order to operate.

Now, Sun Valley Mortgage, already has a PLM (Dennis Porter, who is the owner). If there are more than one PLM license inside of a Company, the inactive PLM, holds the title of ALM. (Associate Lending Manager) The ALM becomes the PLM if the acting PLM were to become separated from the company.

This doesn't mean that I am heir to Sun Valley Mortgage. : ) Sun Valley Mortgage actually has multiple ALM's that were present WAY before I came on board with them.

In order to become a PLM, you have to complete 40 hours of pre-licensing work, and pass a test. (To get your normal mortgage license, you have to have 20 hours and pass a test.) Now that 40 isn't 20 additional on top of your normal. It's 40 additional hours. (None of your Continuting Education that you take to renew your license counts towards it as well. (you need 14 every 2 years)) Oh, and you have to have been active 3 out of the last 5 years in the mortgage industry to be able to qualify to even take your pre-licensing coursework.

So, I have been studying for my PLM test and completing my 40 hours for the past many weeks.

I took the test this morning, and got the wonderful news! I passed. : ) I am mostly relieved that I don't have that still "sitting on my plate" whilst school, and me trying to make money for our family is also going on at the same time.

Yahoo! I have my PLM license, and I am now an ALM! : )

If nothing else comes out of me having my PLM license, it will look good on a resume' and mean that I know my stuff when it comes to Originating Loans for Residential Properties.