Kansas Insurance

 Some see officials of the federal government for the revision of the country, financial control systems as interference in their power to enforce the law, regulators and governments warn they could serious consequences for consumers.
   
Assurance of the price increase, efforts to repair the damage to the mortgage industry is likely to result in chaos stopped, and a grass roots of the banking system, paving the way for innovations such as the payment of interest on checking accounts would be threatened, they predict.
   
“There is no room for the rule of law,” said John Ryan, executive vice president of the Conference of State Bank Supervisors (CSBS), the bank regulator. “That was the Wall Street and a handful of large banks’ dream, far from the States. ”
   
Last week, proposals by the US Department of Treasury, the resumption of system management time has been provided by the States to modernize financial control, now thanks to a combination of state and federal authorities. The current system is considered too critical both inefficient and unnecessary. The report calls for combining several federal agencies to expand the regulatory domain, it would be by the Federal Reserve.
   
But the United States, the heavy hand of the federal government in some of the proposals contained in the report.
   
A plan for the creation of a federal commission or mortgage licenses would be minimum standards for brokers, while countries are already working with the Congress for the establishment of such a standard. Another proposal would increase supervision of the federal state a concession banks, which account for about 70 percent of all banks. And another recommendation, the creation of a federal charter optional insurance against the government at a fixed price, to inspect and policy coverage for those who are otherwise excluded from insurance.
   
The plan of setting up a Mortgage Origination Commission is invited to address the difficulty of Subprime mortgage industry, says in the report. These interest rates adjustable home loans, credit risk to the issuer of the debt have been economic decline and cash, the report presented a large portion of the debt to the states.
   
He noted that in recent years, the state regulated mortgage broker and the lender, more than 50% of appropriations. “These authors are free mortgage uneven degrees of supervision at the state level (and, in some cases, little or no control),” read the report.

A Mortgage Origination Commission wishes to adopt minimum standards for the licensing of all mortgage lenders and brokers, review and evaluate the strengths and weaknesses of the state mortgage licensing system.

CSBS A spokesman acknowledged that the state permission and monitoring of standards has been uneven, but said that the report ignores the past and current efforts to strengthen state control over the mortgage copyright . More than 30 states have laws predatory loans, and in January, states reveals the Nation Wide Mortgage Licensing System, an online database, in which it is said, the actions of licenses mortgage and surveillance information on companies working in several states.

US has also worked with Congress on the bill being put in place minimum standards for the licensing of brokers. Michael Stevens, CSBS’s senior vice president of regulatory policy, said the disclosure of accounting would be the fastest way to achieve the objectives of the Commission.

If the federal government is moving ahead with a mortgage of the committee, said Stevens, wasted valuable time, while the Commission will be set up.

“I think the message you send to the State legislators, regulators and the government is not to do that, what is” in the meantime, he said. “Every movement occurs at the level of the updating of laws, regulations and as a general rule not to update their admission requirements to stop, while people are waiting for the Confederation of acting . ”

Another proposal is to put all banks cash under the control of Confederation. For the moment, the department does a study on the subject, but opponents understood that, in the long run such an approach would result in a consolidated industry, banks and reduce consumer choice destroy the community banks.

It could also stifle innovation banking, banks given that the state concession were the pioneers of funding implemented inventions such as the audit of the accounts and interest home equity loans - all services of the Confederation later copied by banks.

“Crippling public banks, charters are weakening the bank in the United States, Edward L. Ying Ling, the president and CEO of the American Bankers Association, said in a statement.

The federal government is also trying, in the insurance industry, where he claims the patchwork of laws of the State makes it tougher for the United States to compete with companies abroad and foreign companies in the American markets . National Insurance Institute powers that the commissions have rates of hiring, monitoring and verification of political rights forms of practice.

The federal plan recommends the creation of a federal charter for life insurance and other property damage, the possibility for businesses, as part of the federal charter or a state exam.

The Covenant Optional Federal Coalition (OFCC), a group of financial and insurance industry representatives, has long supported the idea of a charter, it seems, reduce costs and encourage competition, which itself to lower insurance premiums for customers.

Companies can also rapid deployment of new products by the federal law on the plan. “When one starts a new product, if you want on the market, you need for each state across the country, compared to only start a market authorization,” said Jon Snow Ling , a spokesman for the American Bankers Association, a member OFCC.
   
But Sandy Praeger, Kansas insurance commissioner and the president of the National Association of Insurance Commissioners, said countries are better prepared to deal with insurance issues, which is unique to their country. “Insurance is a basic financial products and other securities from the banking business, presented unique public policy, regulation and consumer protection, government officials are in a better position to the situation, “wrote in an e-mail.
   
She does not agree with the argument that States not exist in international competition. Four states in the Top-10, and 26 of the Top-50, the insurance market in the world, “she said,” if the government controls the insurance markets relative to other markets’ Insurance around the planet, the size and scope of the States, the markets - and thus the responsibility of governmental regulatory authorities - as a general rule, dwarfs in the markets of all nations “.
   
The idea of an optional insurance for the Charter has been debated over the past ten years and it is unlikely that now, “said Robert J. Hunter, the director of insurance for the Consumer Federation of America and the former insurance commissioner of Texas.
   
The proposal faces cash insurance for deregulation, said Hunter, but the insurance is the nature of the industry, surveillance. He recalled that during his term of office as Commissioner of Insurance in Texas, he warned that the low-cost companies, plans, the sound emerged, but in the fine print, he proved very little coverage.
   
In addition, two rules of the federal state, pressure countries to loosen its assurance standards, so that more companies are choosing the law of the State, the creation of a race to the bottom, when it comes to insurance plans, as critics say.
   
“People would be less protected,” said Hunter. “Prices would be higher, it would be more discrimination against people with low income and minority rights. This would be a chaos… deregulation is not working.”
   
Some countries’ general counsel, against the proposals of his authority as an obstacle to the implementation of state laws.
   
Bob Brammer, spokesman for Iowa Attorney General Tom Miller (D), Subprime a task force for the National Association of Attorneys General, said deregulation is a worrying trend.
   
“It takes the power of States, in the distance, and it gives the federal government,” said Brammer. “The United States are some of the most important regulatory authorities and the criminal prosecution of persons in the whole in the process of partitioning home brewing crisis. ”

Most of the report’s recommendations require congressional approval, which is not expected in the current year.