Think your state should do more to monitor mortgage companies?
Now it can. The Nationwide Mortgage Licensing System, an online database, will help states in their efforts to regulate those companies. If a mortgage company is punished in one state for fraud or predatory lending, other states in which that company does business will soon know about it.
When firms apply to open in new states, they are notified about infractions in other states, and could use that information to deny the company a license.
Seven states – Idaho, Iowa, Kentucky, Massachusetts, Nebraska, New York and Rhode Island – are participating in the registry, which kicked off Jan. 2. Another eight states are set to join by July; and more than 35 states are expected to participate by the end of 2009. Plans call for the public to be able to use the portal to see a company’s state record.
For more information on this story, visit Stateline.org.