California mortgage brokers call for licensing all loan originators

Report offers alternative to new restrictions on nontraditional mortgages

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A trade group representing California mortgage brokers says the best way to protect consumers from the risks associated with nontraditional loans is to license all loan originators — and not place new restrictions on the loans themselves.

In a report released Thursday, the California Association of Mortgage Brokers argued that so-called “exotic” loans such as pay-option and interest-only mortgages are a useful tool for home buyers who might otherwise be priced out of the market.