Could be up to brokers to maintain high ethics
For brokers like Shraybman, who remember what mortgage lending was like before the housing crisis, federal oversight has kept many people in line. He worries that those who might take advantage of customers may reemerge without the CFPB.
“Having been in this industry for many years, I’ve seen firsthand how essential strong regulation is,” Shraybman said. “While there are many ethical lenders and brokers, unfortunately, there are also lots of those who engage in deceptive practices. Though the CFPB can’t eliminate every instance of fraud or deception, its presence does help hold originators and lenders accountable, making them think twice before acting inappropriately.
“In the end, maintaining robust consumer protection at the federal level benefits both the industry and consumers alike.”
He knows that many brokers and lenders will continue to operate ethically regardless of the level of federal regulations. However, he cautions that if some of the oversight is moved to the state level, brokers may see shifting guidelines they will need to monitor.
“Regardless of how the oversight landscape shifts, brokers and lenders shouldn’t change how they conduct business,” Shraybman said. “Ethical standards and consumer protection should remain the priority. However, loan originators should proactively stay informed, continually educate themselves, and adapt quickly to evolving state-specific requirements if states assume greater regulatory control. Being informed and proactive will ensure brokers navigate any regulatory changes effectively.”