[Zach]

It would be great, unless they were to give us restrictions on what we were allowed to charge.

[Finance1]

It would be great, unless they were to give us restrictions on what we were allowed to charge.

It's a slippery slope that nobody on the front lines wants to get involved in. A cap of fees is probable to guaranteed. Then comes compensation structure. ISO's could easily be required by law to pay minimum wage and W-2 their sales reps. Even if minimum wage isn't required, they could easily be required to pay W-2 instead of 1099 on commissions. W-2 = payroll taxes, workmans comp, and payments to State UE pool. The additional costs = lower commission % to the agents.

Then there will be collateral damage. This industry is largely not understood by lawmakers and regulators. If they step in there will be no winners. Only losers. I cannot oppose regulating our industry enough.

I owned and managed a medium sized mortgage brokerage for 10 years. We funded about 50% of originations on our warehouse line so we were a banker too. I lost everything to regulations. It was a complete disaster and I had to let 15 longtime employees go. Worst day of my professional life.

I'm not saying that the mortgage industry didn't need additional oversight. That was obvious. But the way it went down was a complete disaster for many thousands of professionals. It started off slow but it kept coming and coming.

The funny thing is we were only originating what was available to us by big banks and wall street. And we took the fall for that. Now big banks own the market again with virtually no competition from brokers and trying to be a small/medium banker in the industry is fruitless.

Luckily States won't have much appetite for licensing in our space. It's too small. Way too small for them to have to organize oversight. States wouldn't make any money on it. They would likely lose money on it. The Federal Gov doesn't even have commercial loan originator/broker regulation in place. It's up to the States and only 10 or so have any.

National oversight is extremely unlikely anytime soon. State oversight would be the beginning and it would start as patchwork and piecemeal if it starts at all. I'm glad I live in a State that has zero usury or comp limits on unsecured commercial loans over $15k. It's been that way for decades. CA would surely be the first to get involved. lol