MBA Backs Federal Oversight of Industry Nondepositories

The Mortgage Bankers Association is now supporting the creation of a national mortgage regulator, the group's chief executive John Courson said in a meeting with the SourceMedia Mortgage Group editorial staff. The industry has lost its credibility and its image has been tarnished across the board. To restore that credibility, the industry needs to take bold actions, he declared, and there now is the opportunity for "a do-over." This includes "aggressively" seeking federal regulation of nondepository mortgage lenders. Mr. Courson pointed to the patchwork of state regulatory schemes, noting that there are some states where it is virtually non-existent. There is still room for state regulators, in terms of examinations, audits and enforcement, he said. But there needs to be a federal regulator to set the bar and that bar needs to be set high enough to be credible. Another topic of discussion was the future of the secondary market. Mr. Courson said MBA held a summit that brought together parties across the spectrum of divergent views of what should be done regarding Fannie Mae and Freddie Mac. The result was a paper that Mr. Courson described as a starting point for what to do. It discusses several models but does not advocate any particular one.