CFPB Regulations - Play by the same rules: Industry Leader Update - Skip to content

CFPB Regulations – Play by the same rules: Industry Leader Update


UPDATE: Here’s a link to another article on NMLS licensing & the SAFE Act by Richard Booth.

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[vimeo id=”33425593″ width=”625″ height=”352″]

Consumer Financial Protection Bureau Regulations

Consumer Financial Protection Bureau Regulations

Shouldn’t we all play by the same rules?

The Consumer Financial Protection Bureau (CFPB) says all mortgage originators should play by the same rules…even chartered banks. Why does it matter? What are the two different standards that exist today?

Watch this week’s video and post your opinion.


Leave a Comment


  1. Everyone should play by the same rules, no “ifs “ands” or “buts”. This also applies to compensation rules. Other than that the CFPB is a joke, another Czar of the Oboma administration accountable to no one with unlimited power. The idea is good but the implimentation is wrong.

  2. i would love to see it come about,,,, double standards should not exist in the united states,,,,,,you no,,,,, like no or little taxes for the rich ,, cliff

  3. I hope that ALL originators have the exact same requirements. I have heard the Charter Banks say it would cost them too much to get all the licensing that would be required, are you kidding me? All broker originators have to pay for this out of their own pockets where the banks would pay it out of the company funds, which one do you think hurts worse?
    Another area that I believe a lot of people are missing is that banks can structure deals differently that brokers. They can actually pay for closing costs including MIP out of their YSP whereas brokers cannot, how is this a level playing field? Level is level, not tilted one way or the other.

  4. I believe all loan originators should be required to live by the same rules. There should not be a double standard.

  5. This is simply a result of the large bank lobby inside the beltway…

    Where is the “Fair” in Safe and Fair?

    In the end, the large banks are really just trying to remove the broker community, cut competition and then raise fees on the consumers. (Chicago style politics in Washington DC.)

    Force every one of the FDIC insured LO’s to pass the two NMLS tests and additional licensing requirements in their given states.

  6. Does the CFPB mean what it seems it said or do they have something else in mind?

  7. I guess we thought with “Hope and Change” that Barney Frank would make the Big banks have to play by the same rules as us. Thats what happens when uneducated people get the right to vote.

  8. I would like to see a reverse mortgage only license and NMLS test. Many of us only offer reverses.

    • Howie,

      All reverse mortgage originators should be required to pass the normal NMLS exam plus a reverse mortgage specific exam. That would stiffle the growth of originations by many TIPs and some lenders which is a great idea when it comes to the occasional HECM origination by some TIPs and lenders.

  9. I am glad to see this issue hitting daylight. In July 2011, I wrote in American Banker, Final Rule on Safe Act Doesn’t Protect Consumers.

    “To put it into perspective for consumers, imagine going to your physician, attorney or financial planner. These professionals are required to be licensed and required to participate in continuing education. It does not mater if that professional is in private practice or part of a large practice or government entity. Would you trust one of these professionals if he or she were exempt from licensing simply on the basis of their employer?”

    “What the mortgage industry needs is one set of professional requirements for all people who engage in mortgage activity. If you are dispensing residential mortgage advice to consumers you should have a license, period.”

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