Released: May 01, 2008

Brokers in the fast-and-loose lane?

Source: Michelle Singletary, Washington Post (Free Registration)

There are lots of proposed remedies to prevent another mortgage catastrophe like the one we’re going through now. Most of the suggestions I’ve seen won’t fix the loopholes that allowed so many borrowers to take on mortgage loans they couldn’t afford.

But there is one change that may help stem fraud in the mortgage industry, and it could reduce the number of unscrupulous or unlicensed brokers and loan officers who move from state to state preying on borrowers.

The Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators have launched the Nationwide Mortgage Licensing System, which is designed to help state licensing officials keep track of individuals and companies responsible for arranging mortgage loans.

The system streamlines the regulatory process by allowing state-licensed mortgage lenders, brokers and loan officers to use one form to apply for, amend, update or renew their licenses online. 

Read Full Article: Brokers in the fast-and-loose lane?