A battle is brewing over a plan to create a national registry that would license mortgage brokers and suspend those found guilty of predatory tactics and other wrongdoing.
On one side is the Conference of State Bank Supervisors (CSBS), which is working with state mortgage regulators to develop a uniform licensing application for use by all states starting in January. Eventually, the nationwide system would prevent miscreants from moving from place to place.
On the other side is the National Association of Mortgage Brokers (NAMB), which says the CSBS model is defective because it singles out loan brokers who originate loans but who don't actually fund them.
Since there can be rotten apples in every origination channel, the NAMB is backing the creation of a federal registry, one run by the Federal Trade Commission, the Federal Reserve or some other agency that would flag the con artists wherever they are so they can never work in the mortgage business again.
Click here for the complete AP story by Lew Sichelman: Mortgage brokers balk at regulatory plan
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