The mortgage meltdown has triggered a nationwide regulatory overhaul that has New Mexico scrambling to bring its laws in line with new federal mandates.
Under the Secure and Fair Enforcement for Mortgage Licensing Act, approved by Congress in July 2008, all states must set up new licensing and registration requirements for mortgage loan originators. If states don’t comply with that mandate, known as the SAFE Act, the federal government will do it for them, said New Mexico’s Regulation and Licensing Department Superintendent Kelly O’Donnell.
To comply, state regulators have compiled an omnibus bill that establishes strict regulations for loan originators for the first time, broadens rules governing mortgage loan companies and tightens consumer safeguards in the state’s Home Loan Protection Act.
State Sen. Phil Griego, D-San Jose, introduced the bill (Senate Bill 342), with backing from the attorney general, fair housing advocates and industry associations.
“This bill is the product of long, detailed negotiations,” O’Donnell said. “Everyone agrees that state regulation is far preferable to federal regulation. We don’t want the Housing and Urban Development secretary doing it for us. That basic principle has really pulled everybody together.”
Adam Consiglio, legislative chair and president-elect of the New Mexico Association of Mortgage Brokers, agreed.
“We’re very supportive,” Consiglio said. “Our association has been pushing to license loan originators for years, but past bills have been defeated in part because of opposition by some industry representatives. Now we’re being pushed to do it by the feds, and that’s finally bringing everybody together. We’ve worked hard on this and we want it approved.”
Under the Secure and Fair Enforcement for Mortgage Licensing Act, approved by Congress in July 2008, all states must set up new licensing and registration requirements for mortgage loan originators. If states don’t comply with that mandate, known as the SAFE Act, the federal government will do it for them, said New Mexico’s Regulation and Licensing Department Superintendent Kelly O’Donnell.
To comply, state regulators have compiled an omnibus bill that establishes strict regulations for loan originators for the first time, broadens rules governing mortgage loan companies and tightens consumer safeguards in the state’s Home Loan Protection Act.
State Sen. Phil Griego, D-San Jose, introduced the bill (Senate Bill 342), with backing from the attorney general, fair housing advocates and industry associations.
“This bill is the product of long, detailed negotiations,” O’Donnell said. “Everyone agrees that state regulation is far preferable to federal regulation. We don’t want the Housing and Urban Development secretary doing it for us. That basic principle has really pulled everybody together.”
Adam Consiglio, legislative chair and president-elect of the New Mexico Association of Mortgage Brokers, agreed.
“We’re very supportive,” Consiglio said. “Our association has been pushing to license loan originators for years, but past bills have been defeated in part because of opposition by some industry representatives. Now we’re being pushed to do it by the feds, and that’s finally bringing everybody together. We’ve worked hard on this and we want it approved.”
