NAMB Prez: Suitability Legislation Won't Work

Proposed legislation to mandate that mortgage professionals sign off on borrower suitability as a solution to curbing predatory practices "won't work in the real world," the new president of the National Association of Mortgage Brokers, George Hanzimanolis, has told the NAMB annual conference in Seattle.Mr. Hanzimanolis commended politicians for trying to come up with a solution for the problem, but says requiring brokers to sign off on borrower suitability is just not the answer. "When the broker takes an application, they have a limited amount of information on the borrower," Mr. Hanzimanolis said. "There are too many unknowns for anyone to determine long-term suitability. How am I supposed to predict if the borrower will maintain employment, won't get a divorce, won't suffer a death in the family, won't become unexpectedly sick? This is sexy on the Hill, but it won't work in the real world." The NAMB can be found online at http://www.namb.org.