In a Realty Times  article recently Blanche Evans discussed again how the banking industry is attempting to muscle in on real estate.  U.S. Treasury Secretary Paulson is calling for more regulation on banks "including federal and state oversight on mortgage lenders."

Just four years ago the federal overseer of banks, Evans points out, the Comptroller of the Currency promulgated guidelines exempting nationally-chartered financial institutions from state oversight.  There was a rush by banks to apply for federal charters.  Fast forward to 2007, with all the mortgage "issues."  With wild and woolly lending by such institutions having devastated the market and many homeowners, State-chartered mortgage lenders will have a harder time competing in the market if Mr. Paulson gets his way. 

And, as Evans has pointed out in the past, overseeing all the national mortgage lenders may very well be funded by a federal real estate transfer tax.  Let me write that again: A FEDERAL REAL ESTATE TRANSFER TAX.

Equally ugly, but unknown to most borrowers, is the fact that even though New Jersey, for just one example,  does not permit a pre-payment penalty for those paying off their mortgage early, lenders who are federally chartered can in fact charge that fee.  States currently have no control over the federally-chartered lenders.  The nose of the camel is already in the tent.