NAMB Supports Creation of Mortgage Origination Commission
Mar 31, 2008
McLean, Va. – March 30, 2008 – The National Association of Mortgage Brokers (NAMB) today expressed support for Treasury Secretary Henry Paulson’s recommendation to form a federal Mortgage Origination Commission as long as it would have oversight over all mortgage originators, including those employed by subsidiaries of federally chartered banks.
“Although we are still analyzing the plan, the Secretary’s recommendation in this area appears to compliment efforts by the House and the Senate to create a federal clearinghouse or registry for all loan originators,” said NAMB President George Hanzimanolis.
“This proposal addresses how the registry requirement would be enforced, and establishes an office to oversee individual and state compliance with its rules. We support this aspect of the recommendations, and look forward to hearing more details in the days ahead.”
In defining the role of the Mortgage Oversight Commission, NAMB believes federal regulators should closely follow the guidelines established in the House Bill H.R. 3915, which has already won bi-partisan support in the House of Representatives; and the Secure and Fair Enforcement in Mortgage Licensing (SAFE) Act, S. 2595, introduced in the Senate by Senators Dianne Feinstein (D-CA) and Mel Martinez (R-FL).
NAMB has long contended that real consumer protection can be achieved by creating a single national registry that includes all mortgage originators, including mortgage brokers, loan officers and bank employees who originate loans at a bank or bank subsidiary, credit union, or mortgage brokerage; and to create national standards that include professional education, and passage of a examination and criminal background check.
For some time, federal financial institutions have been "untouchable" when it comes to enforcing state consumer protections imposed on individuals originating mortgage loans. State requirements for criminal background checks and education requirements for mortgage originators have been pre-empted by Federal regulators. NAMB believes a uniform standard for individuals in the mortgage origination business should mean "uniform" and also apply to those employed by federal institutions and their subsidiaries.
NAMB has established similar standards for its members, and after the 2008 grace period, all new and renewing NAMB Professional and Loan Originator members must attend professional education and ethics training, pass a criminal background check, and if their state requires it, hold a valid state license to conduct business as a mortgage broker or loan officer.
“An all-inclusive registry will give consumers access to the information they need about their mortgage professional in order to make sound financial decisions, Hanzimanolis said.
“Hopefully, the current instability of our financial markets makes clear that an overhaul of the entire system overseeing the activities of financial institutions and Wall Street firms is critically needed to ensure the safety and soundness of the system and restore public confidence.”
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