Time for a Refresher Course?

It could be time for mortgage brokers to hit the books. New compliance and licensing standards may be on the horizon.

Today, Treasury Secretary Henry Paulson proposed that imposing tougher standards on mortgage brokers could help us dig out of this current credit mess. He's asking for "strong nationwide licensing standards" for mortgage brokers in order to instill confidence back into the market.

"Regulations needs to catch up with innovation and help restore investor confidence but not go so far as to create new problems, make our markets less efficient or cut off credit to those who need it," Paulson said.

How do you feel about nationwide licensing standards? In one respect, a nationwide plan could help brokers do more business across a variety of states and also cut down on redundant paperwork and compliance issues that arise up from doing business in multiple states. On the other hand, would turning over licensing to the Feds cause more problems by installing a one-size-fits-all policy that discounts local differences in real estate markets? I guess we'll have to wait and see exactly what the "tougher standards" are before making a decision. In the meantime, it might not be a bad idea to dig out your Real Estate Principals textbook.

On a side note, is anyone else distracted by Paulson's resemblance to 2-time AL MVP Cal Ripken Jr.?

Will the real Treasury Secretary please stand up?