The Mortgage Bankers Association, in a new comment letter to the CFPB, questions whether bank and nonbank residential loan officers should face the same rules when it comes to training and other issues such as “character” and “fitness” responsibilities.
Currently, nonbank LOs must pass state tests and meet additional education requirements while loan officers that work at a depository receive a waiver. (Bank and nonbank LOs alike must register with the states under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008.)
The MBA, in its comment letter, notes that its membership base includes both banks and nonbanks. It asks the regulator to be “mindful of the current responsibilities of both federally and state-regulated entities.”
Broker trade groups, including the National Association of Independent Housing Professionals, want complete regulatory parity between bank and nonbank LOs.
The MBA dances around the issue a bit in its comments, telling CFPB chief Richard Cordray that it hopes the agency will “only add requirements which are necessary, complimentary, and are not burdensome.”
But the trade group adds, “We believe consumers deserve the services of knowledgeable and well-qualified mortgage loan originators no matter where the MLO is employed.”
The letter was sent to Cordray from MBA president David Stevens, a former FHA commissioner.
