I totally support national licensing of loan originators. Our Washington State DFI Director, Chuck Cross just left our state and moved to WaDC to work on this project.

To answer your question – the difference between what the CSBS is proposing is a registry for ONLY mortgage brokers that originate home loans – not all originators.

For example – right now I work for a mortgage bank (a correspondent lender) I wouldn’t be required to register as an originator under the CSBS proposal. If I worked for a federally chartered lender I wouldn’t need to register either.

This creates a major loop-hole and renders the system useless. Mortgage brokers are not any more or less criminal than originators that work for federally chartered institutions or mortgage banking institutions – there are bad apples and good apples in all aspects of lending. And that is what needs to be covered – all aspects, not just brokering.