photo credit: magerleagues

Making its way through the blogosphere right now is news of a little noticed bill authored by Sens. Diane Feinstein (D-Calif.) and Mel Martinez (R-Fla.) with 11 co-sponsors, including Sen. Barack Obama that was incorporated into a housing bill (Federal Housing Finance Regulatory Reform Act of 2008) and passed by the Senate Banking Committee before the Memorial Day recess. The legislations creates a national fingerprint registry.

The provision was part of the “S.A.F.E. Mortgage Licensing Act.”

From Open Market::

And the database would cover a broad swath of individuals involved with mortgage lending. The amendment defines “loan originator” as anyone who “takes a residential loan application; and offers or negotiates terms of a residential mortgage loan for compensation or gain.” It states that even real estate brokers would be covered if they receive any compensation from lenders or mortgage brokers. Since many jobs in both real estate and mortgage lending are part-time and seasonal, even some of the most minor players in the mortgage market may have to submit their prints.

Justifications listed in the bill for this database include “increased accountability and tracking of loan originators,” “enhance[d] consumer protection,” and “facilitat[ing] responsible behavior in the subprime mortgage market.”