Jan 04 2008
Regulation of Bond Originators
Seven American states started this new year by announcing Mortgage Broker-Licensing Laws, an Internet-based system introduced to supervise mortgage brokers.
The system creates a uniform application for mortgage brokers and a database that banking regulators can use to track brokers who try to work after being banned. The system is mandatory for brokers doing business in cooperating states and regulators will be able to penalise brokers who operate without a license.
This on the eve of the introduction in South Africa of new industry qualifications for Estate Agents. Leigh Roberts stated in an article he wrote in Business Times: ” Notwithstanding the pro’s and con’s of mortgage broking, this industry will burgeon as it has done in other countries. ” The bond origination industry in South Africa, as he predicted, has had a rapid growth.
The ‘fly-by-night’ bond originators, as with estate agents, will always be a part of our industries. Lets hope that the Bond Origination industry will regulate itself before political interventions and various new acts of Parliament are imposed. At PRO-PROP we go to great lengths in our endeavors to ensure that the Bond Consultants introduced to our clients are qualified and effective.
Source: The Associated Press, Alan Zibel (01/02/2007) (Daily Real Estate News.January 3, 2008)