Mortgage brokers should avoid turning themselves into correspondent lenders because the lack of guidance from regulators makes such a move too risky, a panel of experts said at the Independent Mortgage Bankers Conference in Miami.

Ballard Spahr partner Richard J. Andreano, Jr., moderator of the panel, said that with no specific guidelines, brokers must "pass the smell test." He said that it is often up to the regulators' view of the world, "but often we don't know what that view is."

At some point, “you have to line up on one side of the line or the other, but we don't know where that line is," Mr. Andreano said. "That's when things start to unravel.”

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