Industry NewsMortgage

Feds want states to license mortgage brokers

Report outlines steps to improve loan underwriting

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Federal regulators on Thursday unveiled a set of recommendations for strengthening regulations governing mortgage lending, including improved disclosures and the adoption by all states of a nationwide licensing standard for mortgage brokers. In announcing the recommendations Thursday, Treasury Secretary Henry Paulson said that "regulation needs to catch up with innovation and help restore investor confidence but not go so far as to create new problems, make our markets less efficient or cut off credit to those who need it." The recommendations were outlined in a 21-page report issued by The President's Working Group on Financial Markets, whose members include the Department of the Treasury, the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission. The group's recommendations for reforming the mortgage origination process include: Adoption by states of "strong nationwide licensing standards" for mortgage brokers, ...