OpinionIndustry News

Licensing all mortgage brokers carries many benefits

Perspective: More regulation a necessary evil for people, products

The time has come for every mortgage broker in California to possess a state license, regardless of whether he or she proffers mortgages independently or is an employee of a banking corporation. Or so says the California Association of Mortgage Brokers. The association's position is (mostly) on the right track. Licensing of people who sell major financial products like real estate, mortgages and insurance is good public policy because the issuance of a license creates an official means to conduct background checks, impose educational requirements and investigate allegations of wrongdoing against individual licensees. These public policy benefits explain why independent mortgage brokers already are required to obtain a license, and the same benefits make a strong argument as to why it's also a good idea to impose the same requirement on individuals who work for corporations. Along with organizations, these individuals should be well qualified and responsible for their own actions. Furt...