Agreement Reached on Licensing Principles

State regulators have agreed with industry groups on a set of principles that the states should consider as they adopt legislation to participate in national licensing system for state-licensed mortgage lenders and brokers.The Conference of State Bank Supervisors and American Association of Residential Mortgage Regulators also agreed with industry groups on sample legislative language that participating states should consider. "Our hope is that by issuing these principles, we can dispel many of the concerns that have been raised to date about the system and begin working with industry in developing legislation that will help to build a modern state licensing system," AARMR president George Kinsel said. The American Financial Services Association said it is now willing to support the new mortgage licensing system. "In particular, we are pleased the principles clarify that the system is not intended to promote the licensing of mortgage loan originators who work for already licensed companies," AFSA president and chief executive Chris Stinebert said. The Mortgage Bankers Association said they support the principles and the sample legislation language.