NY Originator Ed Bill Awaits Guv's Signature

After a 20-year wait, a mortgage originator education bill is awaiting the signature of New York Gov. George Pataki, the outgoing president of the New York Association of Mortgage Brokers announced Thursday at the group's annual convention in Melville, N.Y.The NYAMB executive, Don Romano, said the bill also requires that originators who work for any state-regulated entity, including mortgage bankers and state-chartered banks and thrifts, be registered and that the background check be performed by the New York Banking Department. As for specifics, Mr. Romano said there are no rules established for the law, which would go into effect on Jan. 1, 2007, although implementation would be one year later. But among the people who would have to be registered is "anyone with direct contact with the consumer," he said. The law establishes an even playing field among state-regulated entities, and "it is going to be a plus for us" in competing with federally chartered entities, Mr. Romano said. The NYAMB is going to push the idea that, by dealing with a mortgage broker, a consumer is dealing with someone who is regulated by a local authority, he said.