We will now be a mortgage broker. We are entering into an agreement with a company that will purchase all the loans that fit their requirements. This is a totally new area to me. I was wondering if someone could point me to the right direction for researching compliance issues - of which I do know there are many, many!! We are a state member bank if that helps.

Who is making the actual credit decision on these loans? If it is your correspondent, then you need to make sure that these loan applications are not recorded on your HMDA LAR.

Are you ther original creditor, or are the loans table-funded by the correpsondent? Will you receive yield spread premiums? There are a several instersting cases regarding the legality of YSPs under Section 8 of the Home Mortgage Disclosure Act. The Court Watch page will provide you with details.

Those are the two biggest issues that could be different than making loans for your own protfolio. Treat these loans like you made them for compliance with Reg Z, RESPA, etc., and you should be okay.

The correspondent is actually making the loan decision. The contract states that we are responsible for compliance with Reg Z, RESPA, etc. It also says that we are responsible for providing adverse action notices. Is this correct if we are not making the credit decision?

The loans are to be table funded by the correspondent and we will be receiving YSP. I'll check out the court watch reports - thanks!

When I was researching Mortgage Brokers a few months back, I found a lot of stuff at HUD's website, www.hud.gov, and at the MBA (Mortgage Bankers Association) site. Plus, your state banking website should have all the licensing and educational requirements; and sometimes they even have articles of interest to mortgage bankers and brokers. Hope this helps.

If you have access to VMP Online, it is a very informative website on what is required from a broker standpoint for all the states.