MBA SUPPORTS MORTGAGE BROKER LICENSING IN NEY-KANJORSKI BILL

MORTGAGE BROKERS SHOULD BE SUBJECT TO uniform licensing standards as proposed in H.R. 1295, the Responsible Lending Act of 2005, to ensure greater accountability while making compliance easier for multistate brokers, Teresa Bryce, cochair of MBA's State Licensing Task Force told members of the House Financial Services' Subcommittee on Housing and Community Opportunity.

H.R. 1295, also known as the NeyKanjorski Act, has garnered wide attention for its anti-predatory-lending proposals, but the bill's lesser-known provision in Title V, "Requirements for Mortgage Brokers," is supported by MBA because it will "elevate the standard of professionalism within the mortgage broker industry," Bryce testified.

Title V of H.R. 1295 would give states three years to pass uniform statutes for the licensing of mortgage brokers; create federal mortgage broker requirements for those states that do not pass compliant legislation; and establish a national database of licensed mortgage brokers that would be accessible by state and federal regulators, real estate finance companies employing mortgage brokers, and the general public.