NAHB and Senior Lending Network partner with Rebuilding Together New Orleans for work on damaged home – NMP Skip to main content

NAHB and Senior Lending Network partner with Rebuilding Together New Orleans for work on damaged home

National Mortgage Professional
May 20, 2008

MBA releases policy paper clarifying roles of mortgage bankers and brokersMortgagePress.comMBA, mortgage banker, mortgage broker, Mortgage Bankers and Mortgage Brokers: Distinct Businesses Warranting Distinct Regulation The Mortgage Bankers Association has released a new policy paper titled, "Mortgage Bankers and Mortgage Brokers: Distinct Businesses Warranting Distinct Regulation." The paper brings clarity about the roles and responsibilities of mortgage bankers and mortgage brokers to current legislative and regulatory discussions. An audio replay of the teleconference announcing the release of the policy paper may be accessed bl clicking here. "Mortgage bankers and brokers are both central players in the effort to provide the opportunity of homeownership to millions of Americans," said David G. Kittle, CMB, MBA's Chairman-elect. "Bankers and brokers, however, serve different functions in the mortgage process that demand different regulatory oversight." The recent turmoil in the mortgage and housing markets has brought renewed attention to the mortgage origination process. Several pieces of legislation and regulation under consideration in Congress and the states propose improving consumer protection. According to the paper, efforts to reform the origination process ought to take the distinct differences between mortgage brokers and bankers into account. "Lenders and brokers have worked together to expand access to mortgage credit, especially for those who may have been traditionally had a difficult time getting home financing," continued Kittle. "As Congress and state and federal regulators look at reforming how mortgages are originated, we want to make sure they understand how bankers and brokers differ and how new regulations ought to reflect those differences." MBA's paper examines the different relationship and expectations that borrowers have with bankers and brokers and the disparate compensation structures and incentives that each have. It also looks at the separate types and levels of oversight that each faces. Because improvements to the mortgage origination process can best be achieved through proposals that recognize these differences, MBA is recommending that: • Borrowers receive clear disclosures of the brokers' responsibilities and compensation; • Mortgage brokers who claim to be or act as borrower agents be treated legally as agents; • Mortgage brokers have sufficient financial resources - through a national minimum net worth requirement - to provide protection to borrowers and mortgage bankers where necessary; • Mortgage brokers be appropriately bonded to give consumers greater protection; and • All loan originators, including brokers and bankers, be registered and appropriately licensed in accordance with rigorous standards. A copy of Mortgage Bankers and Mortgage Brokers: Distinct Businesses Warranting Distinct Regulation can be found by clicking here.
Published
May 20, 2008
Lakeview Loan Servicing Faces Multiple Lawsuits Over Data Breach

At least a dozen civil lawsuits have been filed against the company, all seeking class-action status.

Industry News
May 26, 2022
Homepoint Rolls Out Jumbo ARM Loans

Homepoint's Jumbo ARM is a strategic addition to the company’s expanding jumbo portfolio.

Industry News
May 25, 2022
Planet Home Lending Expands in Oregon

New team in Portland focuses on construction lending in the Northwest.

Career
May 24, 2022
PennyMac Cutting 207 Jobs

A wide variety of positions are affected.

Industry News
May 24, 2022
Loan Officer Charged With Bank Fraud, Identity Theft

If convicted, she faces up to 30 years in federal prison on each bank fraud count and a mandatory consecutive 2 years’ imprisonment.

Industry News
May 24, 2022
Openn Launches Pilot with bridgeMLS For Sales In California

Agents in Northern California, Bay Area will be able to list property and accept offers using the platform. 

Tech
May 24, 2022