A message from NAMB President George Hanzimanolis and NAMB EVP Roy DeLoachGeorge Hanzimanolis and Roy DeLoachNational Association of Mortgage Brokers
We find ourselves in the midst of unprecedented turmoil in the
mortgage market. Many of the issues and concerns that were
initially limited to the sub-prime market are now affecting the
availability of credit for prime and Alt-A borrowers as well.
Lenders are going out of business, an increasing number of mortgage
products are becoming unavailable and many mortgage companies are
finding that their warehouse lines are being discontinued.
The National Association of Mortgage Brokers is aware of how
these changing market conditions are impacting our businesses, and
we are working every day with lawmakers and industry leaders to
find workable solutions.
NAMB is our voice in Washington, D.C., and has become an
industry leader and trusted source of information for lawmakers,
regulators and media outlets across the country. We have built
strong relationships at both the state and federal level, and we
are acting to effectively respond to new developments as they
Our communications team is working aggressively to restore faith in
our industry and respond to the many false claims being made about
Mortgage Brokers. NAMB leaders have appeared on national television
news shows, radio and in major national print publications,
promoting and defending our industry and combating
NAMB leadership has also been working behind the scenes to
develop new ways to distinguish NAMB members from others in the
industry, including more rigorous requirements for membership. This
initiative will be introduced at NAMB/WEST in Las Vegas from
Friday-Tuesday, Nov. 2-6.
We believe that extreme caution must be exercised before any
mortgage legislation is passed that might further curtail mortgage
lending and make the current credit and liquidity crisis even
worse. If legislation is ultimately enacted, NAMB believes that the
following elements should be included in any comprehensive
• Treat all mortgage originators equally;
• Create a national registry for all mortgage
• Establish minimum licensing standards, education
requirements and criminal background checks for all mortgage
originators at the state level;
• Create additional consumer protections; and
• Provide for enhanced enforcement of current mortgage and
consumer protection laws.
If Congress decides to act, NAMB would support a comprehensive
solution that includes all market participants, from Wall Street to
Main Street. We believe that singling out any one party for blame
is counter-productive and will not provide an effective solution to
Part of the problem facing the mortgage industry was caused by a
lack of effective oversight. State and federal regulators are now
issuing guidance and adopting higher standards across the nation.
This effort is having the desired effect on the market. We eagerly
await the Federal Reserve Board's upcoming commentary on improving
consumer protections under Section 32 of the Truth-in-Lending Act.
At this point, it is important to allow sufficient time for the
regulators' efforts to work, rather than risk over-reacting to the
current problems in the market and causing further harm.
Modernizing and revitalizing the Federal Housing Administration
(FHA) loan program is vital to helping deserving families both now
and in the future, and this remains a top priority for NAMB. NAMB
supports HR 1852, and continues to urge members of Congress to pass
this important legislation that will replace the current audit
requirements for Mortgage Brokers with a surety bond and help make
FHA a more viable choice for consumers. We also support expanding
veterans' financial options by authorizing a Veterans Affairs
Reverse Mortgage Program (HR 2475).
Finally, NAMB continues to believe that the unfettered sale of
trigger lists poses a risk to consumers, and we are working toward
putting an end to this practice.
How you can help
There are things you can do in your local communities to help us in
• Stay informed by reading News from NAMB, special
legislative updates and bulletins from NAMB and your state
association, and trade periodicals.
• Attend local meetings to find out more about how your state
association is protecting your interests within your state.
• Be prepared to answer a NAMB call to action if and when
federal legislative action is eminent.
This is a difficult time for all of us. NAMB and all of our
state affiliates are energized and working hard to promote and
defend our industry. We expect the next six months to be very
challenging. Now is the time for all of us to work together. Now is
the time for reasoned solutions to complex problems. Now is the
time to act.
If you have any additional questions or concerns, please feel
free to contact one of us or our government affairs staff at [email protected]
Thank you for your support,
George Hanzimanolis, CRMS, President
Roy DeLoach, Executive Vice President
National Association of Mortgage Brokers