07/29/2010
Watching Regulation Come in Through the Front Door
As regulation and oversight continue to increase the scrutiny applied to many commercial loan processes, we see its consequences as potential borrowers are turned down.
In somewhat breaking news, federal bank regulators approved a two-year old requirement passed by Congress that calls for Loan Officers to register into a federal database across the nation.
According to the Associated Press story, Loan Officers who are employed by any bank regulated on a federal and state level must comply.
By the end of the year, all fifty states are expected to participate, increasing the level of regulation not only vertically, but also horizontally through the front doors of banks.
While this may help assuage consumer fears in the wake of banking reputations that arose from the recent economic meltdown, how does it really affect our industry, especially our small niche of small-balance commercial lending? Is this kind of effort, money, and regulation as effective as it seems? We’d like to hear your opinion.
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