But better consumer protections and disclosures, as well as greater supervisory scrutiny of the processes that originators follow and the incentives they face, are also needed. In the mortgage area, the PWG recommended action at both the federal and state levels, including, for example, stronger nationwide licensing standards for mortgage brokers and more consistent government oversight for all originators.
In particular, the PWG recommended that the Federal Reserve use its authority to strengthen consumer protection rules and enhance required disclosures for mortgage originations. I strongly support this recommendation, and its implementation is well under way.