BOSTON — New rules for regulating mortgage originators will probably be less onerous for credit unions and other regulated depository institutions, bank regulation expert Mike Stevens said today.
Stevens said credit unions and their employees will have to register with a new national registry but won't have to attain a separate license.
The rules, which implement a law passed by Congress last year, require information such as employment and financial history to be included. The public will have access to some data so they can decide if they want to do business with an originator but some data, such as financial information, won't be available.
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The proposed rules suggested that credit unions that originate 25 or fewer loans can be exempt from the registry as long as no one individual on their staff originates more than five loans. But those rules are still being discussed within the government and could change because during the comment period many organizations, including CUNA and NAFCU, expressed concerns about them.
Stevens, the senior vice president for regulation at the Conference of State Bank Supervisors, said the law was passed in light of the financial crisis which was caused by some of the bad mortgages issued during the past few years. The implementation rules were sent out for public comment and regulators are reviewing the comments before issuing final regulations.
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