June 02, 2009

Mortgage originators will have to submit fingerprints and other personal information to federal authorities who will maintain a database of the agents who help homebuyers secure loans, according to a plan released by U.S. regulators on Monday.The new standards were conceived by Congress last summer and were part of a broader plan to help stabilize the rattled housing markets, stem foreclosures and increase consumer protections.

Consumer advocates attest that unethical mortgage brokers duped many borrowers into high-cost loans that ended in foreclosure.The Federal Reserve helped set the standards that have been agreed to among the top federal banking regulators and that will establish a database accessible by consumers.The Federal Bureau of Investigations will use fingerprints to perform a criminal background check on loan agents who must annually register under the program.