Of course it is but in practice, it won’t work. Wall Street taught us that. If a client is best-suited for a neg-am loan, will the BofA originator refer it out?

Ceasar’s wife should be above reproach:
http://www.bloodhoundrealty.com/BloodhoundBlog/?p=314

I watched the WorldSavings clip and was disgusted but not surprised. In LA those folks were notorious for putting folks into loans they didn’t understand or have any business getting into.

I especially liked how the training video taught originators to avoid a straightforward question about negative amortization, and then coined some Orwellian doublespeak to characterize the loans to a skeptical broker prospect.

I just don’t think national licensure solves much, and it’s potentially harmful to consumers now that some states like WA are stepping up with more stringent loan officer standards. The idea seems analogous to the nationalization of credit card regulation.

If you’ll recall, following a couple of court decisions, much of the consumer lending regulation got turned over to the feds (and banks subsequently fled to Delaware and South Dakota) and the states lost any opportunity to restrict usurious behavior. I’m sure the banks claimed that the decreased regulation made economic sense, but it’s hard to argue that consumers are better served today against abusive credit card or consumer loan practices.

What’s to say a uniform national loan officer licensing system will be any better? I certainly don’t think it would prevent the Wachovia/World Savings type behavior highlighted in the video.

Thanks for the link I am using it right now. There is a post on Appraisal Scoop right now that is talking about “Federal Housing Finance and Regulatory Reform Act of 2008″ as it addresses appraisals.
see here

http://appraisalnewsonline.typepad.com/appraisal_news_for_real_e/2008/05/fha-appraisers.html

I am typing out a comment right now! Will be linking back to this great post in the comment! Guess Great Minds Think Alike! lol

Crazy Real Estate World These Days!

I think we agree that a national licensing system would help businesses save money on multiple state licensing.

In terms of complying with various different state mortgage lending laws, that still must reside at the state level. I think we agree on this point, too, yes?

I believe the state regulators are doing a much better job of regulating their state licensees when compared with the federal government.

There’s simply not enough federal dollars to regulate at the hyper local level. Instead, the feds go after the big corporations and the egregious cases of mortgage fraud. The small deeds go unnoticed by the feds.

I was JUST thinking about you when I read this story about how Republicans are thinking about trying to kill the Cuomo/Fannie/Freddie appraisal settlement. Let me see if I can find the story. Here it is.
http://www.housingwire.com/2008/05/21/republicans-considering-challenge-to-gse-appraisal-pact/