Last year they handled $50 billion worth of home loans and refinancing in the state of Washington.  They're loan officers, or loan "originators," who work for mortgage brokers.  And starting next year, the requirements for doing that line of work will get much more strict. 

A basic home loan or refinance is still a complicated deal and an important piece of life's puzzle. 

"It's a very complex business relationship," says Jason Bloom, Elliott Bay Mortgage. "And the reality is for most consumers, the largest asset they'll ever have is the home - and the largest liability they'll ever carry is that mortgage." 

About 8,000 loan "originators" currently work for mortgage brokers in this state. Right now they're not licensed and are virtually unregulated.  

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But that changes Jan. 1 of 2007.  Loan originators working for mortgage brokers will have to apply for a state license, take a test to prove their competence and take classes every year.  And there will be a criminal background check; a felony or financial misconduct means no license. 

It has been a field open to fraud. Last year the KING 5 Investigators exposed loan scammers who were using consumers to cheat lenders  through a web of home purchases bank loans and inflated property appraisals.  The industry hopes new professional standards will benefit consumers and make it harder for crooks and incompetents to operate. 

Adam Stein with the Washington Mortgage Brokers Association says new background checks in Ohio weeded out 10 percent of loan originators. 

"Now that doesn't mean 10 percent of the loan officers were deceiving consumers, but from a reasonable stance, if you were a regulator or if you were an employer, would you have that person in your client's home?" asks Stein. 

The regulations that take effect Jan. 1 are a mix of similar laws already in place in 27 other states and are expected to be some of the toughest in the country.  The Washington State Department of Financial Institutions will have oversight responsibilities.

The new law does not apply to loan officers in federal- and state-chartered banks or to consumer finance companies. The FBI and state patrol will conduct the criminal background checks.