Mortgage brokers to be fingerprinted and registered

Discussion in 'Wall St. News' started by misterno, Jul 28, 2010.


    WASHINGTON (Reuters) - Mortgage loan originators will have to be fingerprinted and sign up to a central registry to do business in future, according to final rules issued on Wednesday by the Federal Reserve and other regulators.

    The rules are part of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, also called the S.A.F.E. Act.

    They were issued by the Fed, Comptroller of the Currency, Federal Deposit Insurance Corp, Office of Thrift Supervision, Farm Credit Administration and National Credit Union Administration.

    Mortgage brokers came under tough scrutiny in the wake of the 2007-09 financial crisis, with some lawmakers and regulators sharply critical of underwriting standards and practices that were seen as so loose they helped foster a housing price bubble.

    The S.A.F.E. Act specifies that mortgage brokers who are employees of agency-regulated institutions must register with the Nationwide Mortgage Licensing System and Registry,

    "As part of this registration process, residential mortgage loan originators must furnish to the registry information and fingerprints for background checks," a joint release from regulators said.

    The final rules take effect on October 1 and it is anticipated that the registry could start accepting registrations as early as January 28, 2011.

    Industry sources say that thousands of brokers have gone through mandatory education, credit checks and state and federal testing in order to retain the right to handle mortgage originations.

    The process has thinned the ranks of brokers, who may be even fewer soon given talk of a 30 percent fail rate on testing, said Bob Moulton, president of Americana Mortgage Group in Manhasset, New York.

    "It cleaned up the industry," said Moulton, who nonetheless cautioned that he felt credit availability for mortgage lending has been reduced as a result of uncertainty caused by U.S. financial regulatory reform.
  2. They should, to get S7 I had to get prints done.

    Anyone involved in the industry should undergo some kind of minimum criteria and a fingerprint/background check.
  3. Bob111


    they should be fingered first :)
  4. yuppers - lack of fingerprints - right up there in the top ten reasons we are in this mess today.
  5. Why not an ankle monitor for all of them?
  6. Someone should step in and regulate the NAR to,, Talk about a wild, wild west industry, realtor’s can make up, mislead, falsify almost everything to promote their sales :mad:
  7. Hello


    I believe in this too, it is mandatory to gain your Series 7 to get fingerprints, and a criminal background check done, why should mortgage brokers be any different..... If anything these assholes were much more suspect than anyone selling stock was.....

    The only problem i have with that whole scenario is if for some reason your fingerprints show up at a crime scene you are numero uno as the suspect they will investigate...... I talked to a couple lawyers about it and they basically said do whatever you can to get out of it, i live a pretty tame life so i dont suspect it being a problem, but if it happens you will get the 10th degree...

    I actually told the people (company)who were making me do fingerprints i wouldnt do them without a fingerprint card, and they sent me one, so it is a good out, your prints will be on a personal piece of paper, as opposed to being on local police record, atleast to start..... eventually when they send them down for analysis you are officially on record, and i wouldnt be surprised if they could draw a DNA sample off it as well...... Bottom line is you are way better doing them that way though, cause your fingerprints/DNA will not be localised, so if you dont spend much time in other states you are still way better off, as you will probably not be falsely accused of anything.