Ney: Proposed Broker Registry Not Pre-emptive

A predatory-lending bill that calls for licensing and registration of mortgage brokers would not pre-empt the states from adopting stricter standards, according to the bill's author, Rep. Bob Ney, R-Ohio.The House Financial Services subcommittee chairman said the bill creates "minimum standards" for mortgage broker licensing. The provision is not pre-emptive and does "not in any way limit the ability of states to go beyond those requirements for stricter standards." Meanwhile, a former president of the National Association of Mortgage Brokers objected that the bill does not require the licensing of loan officers at mortgage companies and banks. The NAMB's Joe Falk noted that originators move from brokerage firms to mortgage companies and said it would weaken the consumer protections in the bill if loan officers were excluded. The Mortgage Bankers Association supports the bill, sponsored by Reps. Ney and Paul Kanjorski, D-Pa., but they are concerned that it would not prevent the states from licensing loan officers. "Unfortunately, some states have moved beyond corporate licensing to require individual loan officers and support staff to be licensed," the MBA's Teresa Bryce testified. Rep. Tubbs Jones, D-Ohio, argued that low-income and minority homeowners don't know there is a difference between mortgage brokers, and therefore both should be licensed.