Senators Dianne Feinstein, D-Calif., and Mel Martinez, R-Fla., have introduced legislation designed to curb abusive lending practices that have contributed to the subprime mortgage crisis.
According to Feinstein's office, the Secure and Fair Enforcement in Mortgage Licensing Act (SAFE Mortgage Licensing Act) would establish national professional licensing standards for mortgage brokers and lending officers. It would also create a national database that consumers can use to verify the credentials of their brokers and lending professionals.
The legislation is similar to H.R.3012, introduced in the House of Representatives by Rep. Spencer Bachus, R-Ala., Feinstein's office adds. National licensing of loan originators has bipartisan support and was included in the comprehensive mortgage reform bill which recently passed the House.