Author’s note: See follow-up post “Are Borrowers Next?”
Fingerprints are considered to be among the most personal of information, and fingerprint databases created and proposed in the name of national security have generated much debate. Recently, “Server in the Sky” — a proposed international database of the fingerprints of suspected criminals and terrorists to be shared among the U.S., U.K. and Canada — has ignited a firestorm of controversy. As have cavalier comments by Homeland Security Secretary Michael Chertoff that fingerprints aren’t “personal data.”
Yet earlier this week, a measure creating a federal fingerprint registry totally unrelated to national security passed a U.S. Senate committee almost without notice. The legislation would require thousands of individuals working even tangentially in the mortgage and real estate industries — and not suspected of anything — to send their prints to the feds. The database and fingerprint mandates were tucked into housing and foreclosure assistance bills that on Tuesday passed the Senate Banking Committee by a vote of 19-2.
The measure the committee passed states that “an indvidual may not engage in the business of a loan originator without first … obtaining a unique identifier.” To obtain this “identifier,” an individual is requiredto “furnish” to the newly created Nationwide Mortgage Licensing System and Registry “information concerning the applicant’s identity, including fingerprints for submission” to the FBI and other government agencies.
The fingerprint provisions are contained in a “manager’s amendment” that was hammered out by committee Chairman Chris Dodd, D-Conn, and Ranking Member Richard Shelby, R-Ala., on Monday and attached the next day to a broader housing bailout bill that had been scheduled for a comittee vote. That bill, the “Federal Housing Finance Regulatory Reform Act of 2008,” expands the lending authority of the Federal Housing Administration and the government-sponsored enterprises Fannie Mae and Freddie Mac to refinance the mortgages of troubled borrowers and banks.
The amendment adopted the fingerprint provisions in a section called the “S.A.F.E. Mortgage Licensing Act.” The fingerprints will be part of what the amendment calls “a comprehensive licensing and supervisory database.”
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.”
I conducted a wide Internet search and found fingerprint provisions in some state bills, but I don’t know if any, or how many passed. But in my search, I could find no arguments explaining how, specifically, collecting the fingerprints of loan originators would better serve borrowers getting mortgages. I called the Senate Banking Committee asking this question, but my call has not been returned yet. (I will update OpenMarket readers when and if it is.)
I imagine that, yes, a fingerprint registry might stop an ex-con from handling loans, but I doubt it will make even a dent in the lending problems the bill aims to stop. And I would venture to guess that the vast majority of the problem mortages were handled by employees with no criminal record. Rather, this seem like another thoughtless idea that lets politicians brag that they are “getting tough” about a particular problem.
But this fingerprint database, in addition to the privacy violations, might create a host of new problems of mortgage fraud. Identity theft involving fingerprints is becoming a major concern among data security experts. Security consultant Bruce Schneier has argued that hackers can steal electronic images of fingerprints directly from the databases they are stored in. And there is virtually nothing in this bill about security procedures that would apply to this database.
It amazes me. We have wrenching debates about privacy and freedom vs. national security when it comes to proposed anti-terrorist programs. But then a smililar scheme is done in response to an economic problem, and it almost escapes without notice. A similar thing has happened with anti-money laundering requirements that mandate that banks effectively spy on their customers for possible violations of everything from drug laws to the tax code.
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This finger printing provision is not just a "Bush" thing, but rather a "Government" thing. The Nature of governments are to ever increase their power and control over the lives of the citizens they lord over.
This is just a case of a dog acting like a dog. This should not come as a surprise to anyone. Governments are what Governments do…………..
The Democrats and Republicans have the same goals, they both want to ratchet up big government and eliminate the bill of rights. They play americans against each otehr on little issues, but on the big issues they work together to screw the american people…15% payroll tax…25%-39% income tax…gasoline taxes over 1$ per barrel. Intentionally destroying our education system to make the people dumber and more dependent…more easily conned into believing the WWF-worthy left-right charade. Don't buy into to it folks! the government is the enemey of the people tehy treat us liek slaves. The welthy elitel hide their money in tax free foundations and fancy tax shelters…only the middle 99% pay taxes. The top democrats and republicans get their agenda straight from the CFR(it is "bipartisian") and it is anti-american!
Shoot me. I can't take it any more.
'The abuses of the Bush era…' Most people will see through this democrat's hypocrisy. President Bush had nothing to do with this Senate decision.
In all fairness, finger-printing is a growing requirement in many states to gain positions in selling insurance (i.e. – Florida, Arizona, etc.) as well as becoming a teacher to your children. While it smacks of "Big Brother", there are people out there who are not looking out for our best interests – be it our financial health or the wellbeing of our kids.
That said, if there's a better way that wouldn't require a video of the past 20 years of someone's life… lets suggest it. What is a better idea, that is perceived as much less invasive into our privacy – yet protects us from scammers etc?
Two-edged sword, but if we were a bit more proactive in offering better solutions, ones that we don't like might not get thrust upon us.
Just a thought.
Cheers.
Jeez, you'd think that having a finger print registry for the mortgage industry was Orwell's 1984. The same requirements have been in place on the securities industry for decades. This is what happens when wide scale abuse happens in a particular industry, as we have all witnessed with the sub prime meltdown, thanks to less than required disclosure to customers.
BTW, you can't blame Bush on this, since he did veto this bill before it was over ridden by the Dem controlled congress…
Spot on, Gabe! This Democrat vs. Republican game is a charade. So whether you're voting for Obama, McCain or Clinton, you're getting the same basic policies. One of which is the erosion of the Constitution and your individual rights and freedoms.
Uh… mr ENOUGH… um if you noticed the bill was put in by Chris Dodd.. a democrat.. NOT by the bush admin. Get your blinders off….
While everyone is seething at Bush the Dems are the ones that are REALLY chipping away at our freedoms!
Obama Mama wants to tell us what we can eat and how warm or cold we can keep our houses….
You hit the nail on the head, Gabe! This Democrat vs. Republican game is a charade. So whether you're voting for Obama, McCain or Clinton, you're getting the same basic policies. One of which is the erosion of the Constitution and your individual rights and freedoms.
Get a grip, you ninnies! This is NOT a bill to require concumers to provide fingerprints to get a loan. WAKE UP. This is an attempt to regulate an industry. The same thing has been in place FOR YEARS in the financial services field. Anyone holding NASD (now FINRA) registrations (i.e. stockbroker, registered rep, etc.) has to provide fingerprints. Hell, teachers have to go through criminal backround checks which I believe also include fingerprinting. You are a bunch of over-reacting handwringing fools.
PJ and a couple of you others have it nailed spot on! It is NOT a lefty-righty issue. It's our presumptuous elected royalty.
For professional reasons, my DNA and fingerprints are on file in a lot of places. I have no issue with this because I knew that's what I was getting into when I took my job.
This sounds like paranoia, but there are many tools for keeping tabs on and tracking people's locations and spending habits. (Credit Card technology is the worst.) I am a very private-minded person. If it were possible, no organization would even know I exist.
I don't trust anyone with this sort of information and this is one more example of how invasive the government and corporate america as a whole is becoming through freedom management.
An I also lean a little towards the right, but we need to really start shuffling the deck with every election. These politicians are way to comfortable in their jobs. Vote 'em all out.
I used to think FREEDOM had a chance to be revived in this country. But there is no way that it ever will be. And after Obama or McCain, Russia will be more free than the US.
You have to submit finger prints to obtain various licenses.
To work as a police officer, stripper, taxi driver, or school teacher you must submit a 10 print card.
So what is the big deal in asking anyone in the finance, loan or real estate professions to do it?
Finger prints are not personal info.
If the Goverment wanted they could take your photo and do a biometric analysis and get another type of unique identifier. The photo could be taken any where,even as you were walking down the street.
This is just another reason we need a national identification card.
Oh, and if you didn't notice – it seems that only real American men seem to be bothered by stuff like this. American women love it. The more control the government has over us, the stronger they feel (women that is)! And the weaker we are as a nation.
Cris Dodd is a Democrat hack. Recently mentioned as a possible VP. Doesn't anyone remember his involvement in the Enron situation. I believe it involved passing laws for his contituancy of lawyers and accountants to limit there liability
I'm a long-time activist gun owner; but not a privacy freak.
The fact is, personal data that is collected, computerized and centralized, is a vital adjunct to the modern economy and every other aspect of 21st century life.
And without a centralized record system identifying everyone in this country, the physical security of this country from terrorism could never be either assured at any reasonable level, or even attempted.
If it is privacy you are all so concerned about, be assured that when you croak and are planted in your box in some cemetery in an urn on somebody's bookshelf, you will have all the privacy you crave, and more so, forever. Until they build a housing development on your graveyard or toss out the urn. All of which they will do one day.
Until then, bitch your hearts out or try your luck in Canada or New Zealand.
Life is tough, and will get tougher as the resources deplete everywhere amd as all the rules tighten up. So get real.
Arnold Harris
Mount Horeb WI
I don’t think this is about getting my prints. Follow the money! What corporation contributed to the senator’s campaign and has a product that captures and stores prints? Sagem Morpho?
Lets face it, we are all sheep. Big Brother is here and times will never be as once they were. Too many people just don't care that their basic liberties and rights are being taken away from them. Our government, much in the same way as China's government, tells its flock that they are restricting our freedoms so as to make us safe. Most readily accept this logic.
As for those of you who try to blame the republicans or democrats, you need to wake up. Both parties are doing this to the American people. The bill that this article mentions is a democratic House bill and Homeland Security is pure republican led. This mind set of total control does not follow a particular party…..it is an egotistical philosophy that comes with power. And that power runs all branches of government regardless of political affiliation.
Those of you who wish to continue pointing your fingers at each other while the barbarians storm the gate, then go ahead and continue to do so. You have already lost, you just don't know it.
Give me liberty, or give me death!
I agree that this government is out of control and too cavalier about disposing of personal rights in the name of security. However, the issue of fingerprints when dealing with large asset tranactions is not new. Financial service representers (brokers, financial planners etc) have been required to submit fingerprint records for many decades. It's about time the same was asked of the Real Estate industry. Many of the activities allowed in real estate were outlawed in the Financial Services industry in 1934. This includes Front Running, non-disclosure of conflicts of interest, hording new issues for short term flips etc. If the Real Estate industry were under the same regulations as adminsitered by the SEC, the recent fraud would not have happened. But, the price bubble would have.
It will be swept in so that even the elite shall be fooled, people say when will someone stand up? Our forfathers wouldn't have asked that question, they would have already stood up.This is the difference in Americans today, willing to stand by and let someone else make the sacrifice. People want to cry and complain and then vote the party, insanity is doing the same thing over and over, and expecting different results each time. Register and vote Independent, or at least write in Ron Paul or even Mickey Mouse, just vote for someone other than the status quo.
Which rules do we really live by..
The Constitution of the USA or the 10 Planks of the Communist Manifesto?
I don't particularly like the idea of the gov't having my prints but they do require them for certain jobs…including financial brokers.
"It's the Democrats! No, it's the Republicans!"
As several other wise individuals have pointed out: IT'S THE DEMOCRATS AND THE REPUBLICANS! They're two sides to the same piece of you-know-what.
I consider myself a Republican. I have been my entire life. These morons in Congress, and the chief moron in the White House, don't qualify to be called "Republican." Just give it up already. Stop defending people who only call themselves "Republican" so they can win re-election.
And you Democrats: How on earth can you think the government wanting a fingerprint registry for certain business professions is a "good thing?" This makes the assumption that everyone in that profession is by default a potential criminal. As such, it doesn't require much of a mental leap to see where laws like this lead. Aren't you supposed to care about civil liberties?
More to the point… aren't BOTH parties supposed to care about civil liberties? You know, THE STUFF IN THE CONSTITUTION?!?
What's becoming increasingly clear is that both parties care about exactly one thing: power. They want to use whatever power they can amass to impose their beliefs on the rest of us. They don't care how big and intrusive the government gets, so long as they're the ones pulling the strings.
And it's the same ON BOTH SIDES, people. Stop deluding yourselves into thinking one side is "less bad" than the other. I say throw 'em all out, and vote in people who care about LIBERTY. Right now, neither party fits the bill.
We the citizens do not have enough organization to make any changes in the political crap going on around us. we are at the mercy of a bunch of greedy corporate corupt jerks. I see alot of blogs that talk about how this sucks and thats wrong but where is the action. I suggest you stop your cry baby blogs back and forth to each other and send letters to whoever needs them. I see alot of good ideas in these little response columns but that is where these good ideas go to rest. Maybe we should all learn from the goody two shoes and busy bodies. Get out there. Do something (legal) about this mess we are allowing to happen around us. Or have a coke and a smile and shut the ____ up.
Drag elected officials into the streets, fingerprint them – follow with tar and feathers!
To get a Texas Driver's license you must provide a thumb print (via an electronic print reader). That's been around for some time. If you think national health care isn't going to require all of your personal data you live in a dream land.
The government has taken control of the people it was suppose to represent long ago.
“an indvidual may not engage in the business of a loan originator without first … obtaining a unique identifier.â€
You don't want to be fingerprinted don't be a loan originator.
This is perfectly reasonable and only lib moonbats are howling about it.
It's because of this mess is why I'm voting Constitution Party this year. I'm sick and tired of BOTH parties using the Constitution as toilet paper.
I'm a realtor – I got fingerprinted prior to licensing. Only a criminal would object…..
Mine are already in government hands. They were recorde when I enlisted in 1973. However at the time it was for DOD purposes only. I also got a public intoxication many years ago, so NCIC has them. But if the congress wants to use them for something else, pound sand. The average Joe family guy and his wife and children do not need to be in a federal data base. Period. Like the man said wait till obammy gets in.
When will America wake up and realize the compromise of our individual freedoms and identities is being disguised in the name of terror, that is the goal of this government to track everyone. Now even economic situations, are prompting them to expand their "grip", they will stop at nothing to gain control over their citizens.
"I’m a realtor – I got fingerprinted prior to licensing. Only a criminal would object.."
This is the kind of thinking that allows fascism to come to power. You sir are a sheep.
Numerous responses have blamed the Bush administration. Read the article again…Chris Dodd LIBERAL DEMOCRAT!!!! is one of the authors of this bill. This is not a BUSH bill, it's a DEMOCRAT bill, Democrats run the Congress right now, we the people put them there. We the people need to vote them out!
Where is Ronald Reagan buried? It seems to me that if we dug him up and propped him up at a desk he would be a better leader than anyone in Congress or running for president.
Looks like the majority party in Congress, Democrats, are going to take away all of our liberties. The Democrats are taking a que from Hugo Chavez.
American Man, you also need to get your head out of your ass. Bush has nothing to do with this bill. Tell me something. How is it that when Democrats control the government is just a wonderful utopia, or so you think, and when we have a Republican President, who can only do what Congress allows him to do, and a DEMOCRAT Congress, the world somehow sucks? Let me remind your little pee brain that the DEMOCRAT controlled House passed this bill. And you want even more Democrats controlling things??? You're stuck on stupid!
By the time folks realize what has been going on in this government..For most it will be too late. Why do law abiding citizens constantly have to give up our rights and privacy to be regulated by Big Brother while illegals and criminals just keep on doing what their doing & nothing happens to them. The decent folk of the U.S. are being squeezed daily by government regulation and encroachment. It never seems to go the other way. It's easier to keep tabs on the honest than track down the dishonest..Lazy government and lazy enforcement of existing laws.
Hey Congress,
Kiss my white ass!
Can we get our 666 tatoos at the same time we get fingerprinted ????
Unfortunately, too many people buy into the concept of a need for the govt to regulate the persons providing the services. If there is a consensus for this, then let each state devise their own scheme for this. This is how the U.S. Constitution would have it done. This is out of the purview of the Federal Govt.
That being said, there is no reason to believe that finger printing mortgage company employees will prevent a financial crime, or the duping of the lazy, the careless or the greedy who do not look before they leap.
Most people who have now found themselves in trouble with their mortgage, made several serious mistakes.
1. purchased too much house for their income.
2. did not perform "due dilligence".
3. did not attempt to "self educate" prior to entering into contract.
A free society must remember that freedom to do what you want also includes the freedom to do stupid or uneducated things and freedom to suffer the consequences of your actions. For good or ill.
To Stan McCullars….
Did you ever work over at First Family Bank in Eustis???
Are you all trading freedom for a little bit of security (so-called)? Then you deserve and probably won't get EITHER!
Well, most of you have forgotten to take your meds this morning. First, Bush has had nothing to do with this. This bill is a bailout of people who made bad choices, home buyers, mortgage brokers and builders. It is common in many states laws that these categories of professionals deliver fingerprints for screening purposes when applying for licenses. This has been standard practice in Florida in the Real Estate industry for over 25 years.
It is also reasonable in my opinion that criminals should be barred from accessing the taxpayer money that will be used to bailout those who should not be bailed out. They are not required to give their fingerprints, they just cannot participate in that profession if they do not. Civil liberties cannot be used to screen nefarious characters from accessing critical professions, government services or government funding.
We require fingerprints of applicants to the law enforcement positions, critical National Security occupations etc. Their is no requirement to furnish these, you have the option of selecting another profession or not seeking to participating in that particular benefit that the Government is funding if you believe that this is something that you should not have to do.
All you Bush haters should really up your dose of meds. He did not have anything to do with this provision, it was all the doing of the Democrat leadership in the House and Senate.
Lemmings, over the cliff, MARCH!
The blind, lead by the deaf, dumb and stupid, are headed for the dust bin of history if we don't wake up.
The more a large percentage of our people want something for doing nothing, the closer we are all getting to the cliff.
I've watched this real estate loan mess develop for over 5 or 6 years. There is no sanity or common sense at any level. Not the government, not the developers, not the lenders and builders, and not we the people.
As much as I hate to admit it, our civilization is headed the way of the Roman empire. Greed, complacency, lack of integrity …….. you name it………. go look at the history books. We are in the process of repeating that which those who are literate and somewhat educated deplore …
DARWIN WAS RIGHT, AND OUR EVOLUTIONARY PATH IS HEADED DOWN A BLIND ALLEY.
IF YOU DON'T BECOME PART OF THE SOLUTION, YOU ARE THE MAIN PART OF THE PROBLEM.
In addition, there's no right to privacy in our country. So get over it. It'll protect you and America.
Whoa, Kevin! Let's back up a little. I don't know what company you keep, but the women in my circle are anti-anything leading towards bigger govenment. I also shoot and hold doors for guys.
Back to the issue. I've had military security clearances, criminal background checks, and several sets of fingerprints taken. That being said, I am opposed to its becoming a general requirement in our society!
When will people realize that the Government has long since sold the Amercian people up the river?
It's not an R vs. D debate, both sides are corrupt. When are we going to police the government?!?!
RGB
What you and many others ( including Dems & Reps) forget, is that the Federal Govt is not empowered by the Constitution to require prints from general citizens. the Constitution explicitly states that the Fed Govt was empowered with the the authority or rights that are "EXPRESSLY" enumerated in the Constitution itself. Anything not expressly numerated to the Fed Govt was reserved to the States govt.'s and / or the people.
I am absolutely blown away by this. What could their real agenda be? Surely they are not ignorant enough to believe this measure will or could have prevented the situation we have today.
Our elected officials have no respect for us or our constitution. They certainly don't hold themselves accountable to anyone or thing. To think, we pay them for this.
I'm really fed up, but it is too late. We have been asleep too long. Our children will suffer.
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