PRESS RELEASE
Posted on: March 28, 2007

Contact:
Jodi Greenblatt
(703)342-5852

Proposed National Registry Would Create Illusion of Protection
CSBS and AARMR Continue to Misrepresent Effectiveness of System

Washington, D.C. - March 27, 2007 - The National Association of Mortgage Brokers today urged Congress not fund or support a proposed broker registration system because it is too narrowly focused to protect consumers from predatory lending.

The registry is sponsored by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR). According to NAMB President Harry Dinham, the regulators' continued rhetoric is hollow and misleading to the public.
Following his testimony before the House Subcommittee on Financial Institutions and Consumer Credit, NAMB President Harry Dinham, said, "At hearing after hearing these groups extol the benefits of this new registry. However, they do not let legislators know that thousands of loan originators at banks and other lending institutions will be exempted from the registry and left unaccountable to the consumers they serve." Dinham continued, "We urge Congress to refrain from offering any assistance until all mortgage originators are registered in the system."

The two state regulatory associations have said the registry would help fight mortgage fraud and predatory lending. Dinham said the goals are admirable but the regulators don't seem willing to approach the registry with a realistic vision that all loan originators must be included for it to be effective and protect consumers.

"Consumers would get a false sense of security from this system as it stands today. Most consumers do not distinguish between origination channels and they would naturally assume that a loan originator at a bank would be held to the same high standards. This is far from the truth and bad actors at banks would still be able to freely travel from bank to bank even if convicted of fraud."

"We support stronger education requirements for the industry, and criminal background checks for all originators," said Dinham. "This registry falls short of accomplishing these goals."

He noted that the largest and most recent predatory lending settlements have involved bankers and lenders that would not be included in the proposed national registry.

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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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