12 U.S. Code § 5101 - Purposes and methods for establishing a mortgage licensing system and registry
Purposes and methods for establishing a mortgage licensing system and registryIn order to increase uniformity, reduce regulatory burden, enhance consumer protection, and reduce fraud, the States, through the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators, are hereby encouraged to establish a Nationwide Mortgage Licensing System and Registry for the residential mortgage industry that accomplishes all of the following objectives:
Provides uniform license applications and reporting requirements for State-licensed loan originators.
Provides consumers with easily accessible information, offered at no charge, utilizing electronic media, including the Internet, regarding the employment history of, and publicly adjudicated disciplinary and enforcement actions against, loan originators.
Establishes a means by which residential mortgage loan originators would, to the greatest extent possible, be required to act in the best interests of the consumer.
Facilitates responsible behavior in the subprime mortgage market place and provides comprehensive training and examination requirements related to subprime mortgage lending.
Facilitates the collection and disbursement of consumer complaints on behalf of State and Federal mortgage regulators.