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Applying for a loan, especially in the past few years, has become a rigorous process. Much like inspecting a cow before it goes to auction, lenders will investigate every nook and cranny of a potential borrower’s financial history before deciding to approve a loan.

But amid years of subprime loans and the collapse of several financial lending institutions, it is becoming apparent that borrowers need to do as much poking and prodding as the lenders themselves.

Due to the expiration of its contract with the Mortgage Lending Education Board, the state of Oregon is now working with the Nationwide Mortgage Licensing System to revamp its process for handing out banker/mortgage broker licenses.

Under the revamp, loan providers must take a 20-hour base course, with 10 hours of a continued education each year to receive and maintain their licenses. Once the initial course is complete, they must pass both a national and state test and go through a criminal background check. They must also acquire a surety bond, which obligates them to pay the borrower if the lender doesn’t uphold the terms of the loan.

And in a move to further safeguard borrowers against poor lending, the state is also trying to improve the accessibility of the public to get information about potential lenders.

In order to do so, the Oregon Division of Finance and Corporate Securities has provided all of its information on lenders to a to help potential borrowers make informed decisions on who to borrow from.

Currently the website shows the license status of each firm and each loan officer licensed in Oregon, as well as the employment history of each. In the future, the Nationwide Mortgage Licensing System will list past complaints and enforcement actions taken against each firm and loan officer.

While you can do plenty to guarantee that you’re working with a good lender, this tool is an easy way to start that research. For more information on updated lending practice procedures, .