Treasury Secretary Encourages New Mortgage Broker, Regulator Reforms

Washington, D.C.–Treasury Secretary Henry Paulson said Thursday in a speech at the Washington, D.C.-based National Press Club that new policy maker recommendations for reform include changes for mortgage brokers, regulators and Wall Street firms, The Wall Street Journal reports. The President’s Working Group on Financial Markets suggestions involve strengthening state and federal oversight of mortgage lenders and brokers and starting “strong nationwide licensing standards” for mortgage brokers,” which would most likely involve legislation.The panel also recommended pushing issuers of mortgage-backed securities to be more transparent about “the level and scope of due diligence” and be clear about whether or not they had to go to more than one credit-rating firm to get solid approval. The panel also encouraged global bank regulators to consider the latest bank capital requirements.