This madness must stop. Federally chartered banks, as you may or may not know, are just one of the entities not required to hold state licensing to make loans. Lenders and brokers are and they are held to high standards and constantly under the "threat" of losing their license ... or worse ... even if one rotten apple makes a mistake.
Federally chartered banks? Nope. Not subject to state laws. In fact, in Georgia, they don't even have to abide by the "Fair Lending Act" but lenders and brokers do. So do you think you get a better deal from a Fed bank? No way! These guys can rake you across the coals and nobody can do anything about it.
According to a report filed by Patrick Crowley of MortgageDaily.com, "A spinoff of the American Express Co. [Ameriprise Bank FSB] has launched a federal savings bank that is jumping into the mortgage business. But instead of loan originators, borrowers will be dealing with financial advisors who are exempt from licensing."
Deregulation is one thing. Unregulation in a highly regulated industry is unacceptable.
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