PRESS RELEASE
Posted on: June 26, 2007

Contact:
Jodi Greenblatt
(703) 342-5842

NAMB Director Testifies About Ending Mortgage Abuse
Before Senate Subcommittee
Solutions Should Be Applied to All Mortgage Originators

Washington, D.C. - June 26, 2007 - NAMB Board Member Denise Leonard today offered recommendations for curbing mortgage abuse, ensuring a fair and competitive marketplace, and protecting consumer choice while testifying before the Senate Subcommittee on Housing, Transportation and Community Development.

During the testimony, Leonard described the confusion that homebuyers face, because many home loan originators act in multiple capacities, and people often don't know if they're working with a mortgage bank, community bank, mortgage broker, or other distribution channel. "Consumers deserve the same level of protection no matter where they get their mortgage," said Leonard.

"Since 2002, NAMB is the only industry trade group that has consistently advocated for more stringent standards for all loan originators regardless of where they are employed, in order to protect consumers and curb abusive and predatory lending practices in the mortgage industry," said Leonard. "We urge Congress to adopt uniform national standards for education, testing, and criminal background checks for all mortgage originators."

Leonard also emphasized NAMB's support for the creation of a national registry of individuals who work in the industry, funded by user fees. "This national registry will stop bad actors from remaining in the mortgage industry, but only if it includes every individual mortgage originator at every state and federally-regulated entity." NAMB's proposed registry would use registrant fees to help fund enforcement and financial literacy.

She also called for increased professional standards for all mortgage originators. "NAMB believes that part of the solution to successfully combating abusive and predatory lending practices is requiring a minimum level of education for all mortgage originators, regardless of where they are employed," said Leonard. She noted that these standards will help create a mortgage market in which consumers are free to shop and compare products and pricing without being intimidated or confused.

Leonard also described NAMB's support for clear, consistent and uniform communication with borrowers through simplified and modernized mortgage disclosures. "Consumers want to know how much their monthly payment will be, if it will change and much getting that loan will cost them at the closing table," she said.

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The National Association of Mortgage Brokers is the voice of the mortgage broker industry with more than 25,000 members in all 50 states and the District of Columbia. NAMB provides education, certification and government affairs representation for the mortgage broker industry, which originates over 50% of all residential loans in the United States.

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