This is an exhausting topic. There are so many parts of this industry that we are basing the word "Regulation" as a cap on everything that applies to what we do everyday. What needs to be regulated when it comes to the Sales/Broker Side is the "Handle" first.

"Handle" What happens after you get a lead. That time in between Funding and the knowledge that is no trade secret that needs to be in the hands of the originating sales office.

The companies/people that do not characterizing themselves correctly and not gaining/providing the right knowledge and relationships to do business the right way. This isn't going to be stopped. Why? Funding Companies NEED ISOs. They are the ORIGINATING SALES OFFICES that bring the food to the table. ISOs are actively seeking Funding Companies to partner with because the rush to fulfill the merchants REQUEST is overpowered by what they actually qualify for. Example: Broker tells merchant what they want to hear, pre-approval/offers, fax messages, emails, mailers with X amount just for your business- Lies.

Providing lies costs money. The tactics OSOs are using are rising costs for the merchant because they are not following the Funding Company's submission standards (UW specs). This also wastes UW time ($) and after you send in 10 submissions that don't pass the qualification check, gets backdoored, etc. It leads to more aspects that need to be regulated because all people are seeing is high commission payouts.

Should there be an validation to work in the industry as an originator? Yes, but to an extent. Sole Brokers and Brokerage Firms acting as Originating Sales Offices for Direct Funding Companies should be separated but have the same submission, qualifying, and closing standards. These standards should be made public because this is the main factor of this industry that is no trade secret and will alleviate a lot of transparency issues.

Anyone can get a lead... the "handle" is a major regulatory concern.