Who Governs Mortgage Lenders?
Mortgage lenders can be banks or some other financial institution. Who regulates mortgage lenders depends upon the type of financial institution underwriting the loan and if it is a national- or state-chartered business.
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Mortgage Lenders
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Mortgage lenders or originators are the financiers of property purchases, whether single-family homes, apartment buildings or office complexes. Lenders can be national or state-chartered banks, credit unions or savings and loan institutions. These businesses are with whom borrowers sign contracts for mortgages.
National Banks
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The Office of the Comptroller of the Currency regulates national banks such as JP Morgan Chase. The federal agency also supervises subsidiaries owned or controlled by national banks.
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Credit Unions and S&Ls
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The federal Office of Thrift Supervision regulates all federal and many state-chartered thrift institutions. That includes savings banks and savings and loan associations. The National Credit Union Administration governs credit unions. It also insures federal and state-chartered credit unions.
State Banks
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State banks are governed by state statutes and agencies. For example, supervision of Illinois state banks falls to the Illinois Department of Financial Professional Regulation - Division of Banking. The Federal Deposit Insurance Corporation and the Federal Reserve Board also govern state banks. The FDIC insures state-chartered banks that are not members of the Federal Reserve System. The Reserve Board oversees state banks that are members of its system.
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References
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