CARSON CITY, Nev. (AP) _ Nevada lawmakers and bankers are questioning Gov. Jim Gibbons' plan to consolidate two state agencies that regulate banking and mortgage industries during an industry crisis that's dragging down the state's economy.
As a small cost-savings measure, Gibbons proposed merging the division that regulates banks and other financial institutions with the division that regulates mortgage lenders.
``Saving $266,000, the price of one average home, in effort to consolidate when we have a crisis in the mortgage lending industry that is dropping every economic indicator into the toilet, I think, is really poor timing,'' said Assemblyman Marcus Conklin, D-Las Vegas, during a budget hearing Friday.
Representatives from both industries also criticized the proposal, saying it could undo several years of work to improve the quality of the state's regulators.
``We have a tremendous amount of concern about the idea to consolidate these two,'' said Randy Robison, a lobbyist for the Nevada Credit Union League. ``It's safe for me to say we appreciate the quality of our regulators. (The merger) would be detrimental to them being able to maintain the same level quality services.''
David Goldwater, a former legislator with a mortgage investment firm, echoed the concern.
``Having somebody specifically dedicated to your business, who understands your business and knows what's going on and is responsive is great not only for business but the consumer,'' he said.
George Burns, administrator of the financial institutions division, said the consolidation plan calls for keeping the mortgage lending investigators in unit separate from the division's other investigators to maintain their industry expertise.
The plummeting housing market has also depleted the number of mortgage agents and brokers that the division is responsible for overseeing, which reduces the workload.
The number of agents regulated by the division has dropped from about 18,000 to just 3,300, testified administrator Joe Waltuch. The division has proposed eliminating 14 positions as a result.
