Mortgage brokers call for uniform application of non-traditional loan guidanceMortgagePress.comNAMB, CSBS, AARMR, non-traditional loan guidance, Harry H. Dinham State-level companion guidance should mirror recent federal approach The National Association of Mortgage Brokers has urged federal and state regulators to ensure that any guidance on non-traditional loans be uniformly applied to all mortgage originators and enforced in the same manner. In early November 2006, the NAMB board of directors unanimously passed a resolution urging the federal banking agencies to delay implementation of their recent guidance that addressed issues relating to non-traditional mortgages until companion guidance that embodied the same principles could be applied evenly and in the same fashion to all mortgage originators. NAMB is now responding to companion guidance recently issued by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, which is largely based on the federal guidelines published in early October 2006. NAMB President Harry H. Dinham, CMC said the association supported the guidance, but didnt believe it would be effective unless consistently applied to all mortgage originators. Uneven or uncoordinated implementation of either the federal or state-level companion guidance will result in consumer confusion and marketplace inefficiencies that will hurt small businesses and potential homebuyers and sellers, said Dinham. He noted that NAMB could only support the companion guidance if it were: 1. Adopted by each state in a form and substance that mirrored the principles and standards outlined in the federal guidance (no more, no less); 2. Applied to all mortgage originators; and 3. Implemented with the same force and effect as the federal guidance, (e.g., as guidance or best practices, not as law or regulation). The regulators have stated that they believe this guidance will protect consumers and enhance the safety and soundness of the industry, said Dinham. We support them in this goal, but it is hard to envision this happening unless consumers are protected by the same set of guidelines, regardless of where they choose to get a loan. NAMB representatives were active in the comment process that led to the federal non-traditional loan guidance, and Dinham said the association is still dedicated to working with industry partners and regulators to create guidance that truly meets the needs of consumers. For more information, visit www.namb.org.