Banks Don’t Play By The Same Rules

Thanks to the recent Supreme Court decision, it has been confirmed that mortgage originators who are employed by banks or their subsidiaries, can ignore state licensing requirements that other Mortgage Professionals are required to abide by.

Again…this is nothing new…just a confirmation.



  1. Rhonda – On the surface it appears to be an unfair advantage for nationally chartered bank. However, I can tell you from personal experience, I would rather deal with a state regulator than an OCC regulator any day of the year. Additionally, the compliance logistics are a nightmare for a large national bank compared to a regional broker or banker. Also, the compliance requirements in many/most circumstances for national lender are MUCH more stringent.

  2. Forgot – It may be a mute point in a few years. There is a growing push on capital hill to institute a national licensing act.

  3. I’ve never worked for a bank…I’ve only been at Mortgage Master, which is a Correspondent Lender. I would rather have a national licensing act…but, Tony, do you think that’s possible w/less government? 😉

  4. I think the national licensing is possible and would make for more consistencies (in theory). We’ll have to wait and see, however it is gaining steam fast in D.C..

    Believe me, OCC and Inspector General regulators can be BRUTAL compared to state compliance regulators.

    I think there is good or bad in both federal and state systems.

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