[MechantLoans]

As with investment brokers, loan brokers offering individualized advice should act in borrowers' best interest, respecting fiduciary duties of disclosure, loyalty and prudence. Brokers should disclose conflicts that compromise their impartiality, such as incentives from lenders to market higher-priced loans over others, and clearly break out the fees they add to loans. Brokers should further preserve impartiality and remain lender-agnostic by standardizing fees from lenders within loan products.
Self-policing alone cannot ensure that all lenders and brokers treat borrowers fairly. The five principles outlined above will help regulators smoke out abusive conduct. Enforcing them will require a centralized authority: otherwise, whack-a-mole regulation may only shunt poor practices to other areas. We should therefore consolidate responsibility for enforcement with the CFPB, a single agency grounded by experience policing similar abuses in other sectors.
From the way Silicon Valley talks about innovation, one might well conclude that it's always an unmitigated good. But that's a dangerous proposition in financial services. The heady years leading up to the 2008 crash taught us that today's financial ingenuity can become tomorrow's scandal. The crisis also made it blindingly obvious that financial innovation must be met with regulatory vigilance. Focused regulation is needed in the online lending industry. If it's done right, responsible actors have no reason to fear it. Rather, they should embrace it.

Great Article Titled - Regulation Could Be a Blessing in Disguise for Online Lenders on American Banker's website today

[Chambo]

Until miscreants start getting penalized financially (or worse), nobody is going to change. they'll keep using the mantra "it's B2B, I can do whatever I want" and keep on, keeping on...

[rick_clsfunding]

The CFPB, Consumer Financial Protection Bureau - that rogue agency spawned from the Dodd-Frank debacle and accountable to no one with zero oversight...yeah, that sounds good...

For what it's worth, North Carolina does require the registration of Loan Brokers (if doing less than 1M per year in volume). I had to submit my financials and acquire a surety bond...and no, this is not a mortgage broker license (although I do have that as well from a former life )