A new system called NMLS & R or National Mortgage Licensing System & Registry was created to assist regulators track which loans are being originated by Licensed Mortgage Loan Originators.  This system also offers consumers the ability to verify that their loan agent is currently licensed and in good standing.

The SAFE Act requires Mortgage Loan Originators or MLO's to complete a laundry list of registration tasks as well as pass a state and national certified test by September 15th 2010. Mortgage Loan Originators not meeting that deadline are still able to originate until December 31st 2010 before their license status changes. Initial test results reported on a national level have shown the failure rate is close to 30% of test takers. The tested content includes updated Mortgage Laws, General Mortgage knowledge and business ethics. Those with current licenses but not actively using them are also be included in eventual license suspension if requirements are not met. NMLS Continuing education must now be satisfied annually. Eventual license suspension for non-compliant Loan Originators who have been either unable or unwilling to stay current with current rules and regulations is the governments answer to preventing future predatory lending.

Another hot topic right now is The Wall Street Reform Bill aimed at regulating lender closing costs. In a portion of the Bill, the current language would require a "flat fee" or a fixed percent that would be both the maximum and minimum rate the law would allow to be earned as commission. Both options would likely have negative consequences for the consumer for whom this Bill was created to protect. The current system allows the consumer to decide how they would like to pay their closing costs. Whether it be upfront costs or minimal to 0 point loans with a slightly elevated interest rate. A consumers right to choose where and what terms they invest their money is what made our financial system a dominate force throughout the world for much of our history. At this point, Consumer education rather than reform would seem to be a better option without full knowledge of what future ramifications this Bill could bring. Much of the Wall Street Reform Bill has placed a target squarely on the backs of Lenders alike. As Lending regulations tighten, the competition for existing business between Lenders and Mortgage brokers will undoubtedly heat up. Lenders being the favorite with their heavy hitting lobbyists.

With Washington still looking for blood  over a country in recession, I'd expect mortgage broker activity on a national level to continue to magically decline.