OTS Seeks Mortgage Bank Authority

The Office of Thrift Supervision is suggesting to Congress that it is time to impose some level of federal supervision over independent mortgage banks and that the OTS has the "expertise" to do it."The OTS has extensive expertise in the oversight and supervision of mortgage banking operations that I believe would benefit the currently unregulated mortgage banking market," OTS Director John Reich told the Exchequer Club in Washington. Imposing federal regulations and minimum lending standards on mortgage banks would create a level playing field with federally chartered banks and thrifts and "reduce the competitive pressures to engage in practices that are misleading and otherwise not consumer-friendly," Mr. Reich said. The Mortgage Bankers Association supports the creation of a uniform national lending standard. But MBA senior vice president Kurt Pfotenhauer said the supervision or regulation of those lending standards will have to be worked out as part of the legislative process. The OTS can be found on the Web at http://www.ots.treas.gov.