Will the New Nationwide Mortgage Licensing System Help?
In typical fashion, regulators are once again offering answers after the slaughter.
The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) have launched a new licensing system for the mortgage industry.
They are calling it the Nationwide Mortgage Licensing System (NMLS).
Boy, they really got creative with, didn't they.
The NMLS is very similar the licensing system being used to regulate securities brokers and dealers.
Over the past year and a half, over 200 large lenders have closed shop.
More are still expected to do the same.
The credit markets are in turmoil and tens of thousands of mortgage industry workers have left the business.
Looks as if the market has already taken care of the excesses that caused so many of today's problems.
But regulators just can't stand by without trying to look good.
So we are now presented with the NMLS and according to its website, it will provide a place "where state-licensed mortgage lenders, brokers, and loan officers have the ability to apply for, amend, update, and renew licenses.
" The NMLS will be a database that will provide unique identifiers for every company registered, including its branches, owners and loan officers.
These identifiers will follow each individual throughout their career in the industry.
Supposedly, the Registry will provide consumers a point of contact in order to check the credentials of any mortgage loan officer or lender that they are considering doing business with.
Sounds great.
I suppose they are going to give an ethics test in order to be listed with the system.
No?Not very feasible is it? Why these regulators think that a nationwide licensing system will help anything, I have no idea.
But hey, let's see if another layer of bureacracy will help.
Just in case this happens again.
So far Idaho, Iowa, Kentucky, Massachusetts, Nebraska, New York and Rhode Island have signed on.
42 states have signed a statement of intent to participate.
They say that all 50 states will eventually join.
I wish I could just take these bureaucrats and make them understand - this mess we are in is simply due to 2 types of loans that were pushed by the banks.
They pushed by allowing mortgage brokers to be highly compensated on loan variables that John Q.
Public did not understand.
I watched it happen.
So did our politicians and lawmakers.
Nothing was done about it while it was happening.
But now that homeowners are crashing and burning, these regulators think that with some fancy licensing system all future problems will be alleviated.
And I have a very nice Florida home to sell them!
The Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) have launched a new licensing system for the mortgage industry.
They are calling it the Nationwide Mortgage Licensing System (NMLS).
Boy, they really got creative with, didn't they.
The NMLS is very similar the licensing system being used to regulate securities brokers and dealers.
Over the past year and a half, over 200 large lenders have closed shop.
More are still expected to do the same.
The credit markets are in turmoil and tens of thousands of mortgage industry workers have left the business.
Looks as if the market has already taken care of the excesses that caused so many of today's problems.
But regulators just can't stand by without trying to look good.
So we are now presented with the NMLS and according to its website, it will provide a place "where state-licensed mortgage lenders, brokers, and loan officers have the ability to apply for, amend, update, and renew licenses.
" The NMLS will be a database that will provide unique identifiers for every company registered, including its branches, owners and loan officers.
These identifiers will follow each individual throughout their career in the industry.
Supposedly, the Registry will provide consumers a point of contact in order to check the credentials of any mortgage loan officer or lender that they are considering doing business with.
Sounds great.
I suppose they are going to give an ethics test in order to be listed with the system.
No?Not very feasible is it? Why these regulators think that a nationwide licensing system will help anything, I have no idea.
But hey, let's see if another layer of bureacracy will help.
Just in case this happens again.
So far Idaho, Iowa, Kentucky, Massachusetts, Nebraska, New York and Rhode Island have signed on.
42 states have signed a statement of intent to participate.
They say that all 50 states will eventually join.
I wish I could just take these bureaucrats and make them understand - this mess we are in is simply due to 2 types of loans that were pushed by the banks.
They pushed by allowing mortgage brokers to be highly compensated on loan variables that John Q.
Public did not understand.
I watched it happen.
So did our politicians and lawmakers.
Nothing was done about it while it was happening.
But now that homeowners are crashing and burning, these regulators think that with some fancy licensing system all future problems will be alleviated.
And I have a very nice Florida home to sell them!
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