They tell you to keep your eye on the ball. But these days we are all wondering, which ball? The skill of a major league batter is needed to respond to the speed and number of regulatory balls of late fired at credit unions and CUSOs making mortgage loans. What may be most frustrating is the guise of these regulations as "protecting the consumer," when they are more likely to have the effect of increasing the cost of a mortgage loan for the consumer and making mortgage loans available to fewer consumers.

Secure and Fair Enforcement for Mortgage Licensing Act compliance has been a focus for many. Hopefully, by now, your mortgage loan originators are licensed in accordance with the laws of the states in which your CUSO does business. The NCUA made clear that it does not regulate CUSOs and thus mortgage CUSOs are not eligible for a licensing exemption. Credit unions must register their MLOs by July 29, 2011.

Some credit unions and CUSOs decided to consolidate functions of various individuals to decrease the number of persons licensed or registered. This is acceptable provided you do not have unlicensed or unregistered persons engaging in the loan origination activities. As roles of individuals change, each CUSO and credit union should periodically evaluate its loan origination process to ensure continued compliance.