The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Federal mortgage regulator needed

Mortgage finance will rise again

The Mortgage Bankers Association is advocating the creation of a federal regulator for all non-bank mortgage originators. The entity would set a federal standard for lending, audit, examination, and enforcement across the US. At present, non-bank lenders are regulated at the state level. Some states are good aggressive regulators and in others regulation is almost non-existent.

"You’ll never eliminate fraud but you can certainly control and reduce it," says John Courson, president and chief executive of Washington, DC-based MBA. "We need a federal regulator that’s got some clout and standards to protect consumers and investors. The credibility of the product all starts with the origination."

The sub-prime crisis and its fallout certainly give credence to calls for a federal regulator for non-bank lenders. However, there is a risk that regulators might stifle the non-bank sector by making it difficult to do business.

"One concern is that the regulatory pendulum will swing too far in the opposite direction," say Michael Lea, of Cardiff Consulting in San Diego. "At minimum you’re going to have significantly higher disclosure requirements. There will likely be expectations that issuers are going to have to hold a significant subordinate position to align incentives.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree