Our Mission > Your Voice

The Community Mortgage Lenders of America is a trade association of community based mortgage lenders, including mortgage companies and banks, that serve the home finance needs of their local communities.

CMLA is the only association solely dedicated to timely, effective representation of small and mid-size independent mortgage lenders. We ensure the concerns of our members are heard as policy makers address pivotal issues in an era of historic change in housing policy.

The Dodd Frank Act, passed in 2010 to address the mortgage and financial crisis, has created an avalanche of regulations and new policies that continue to grow. The regulatory burden for mortgage lenders has skyrocketed, in terms of both the complexity and cost of compliance. Not surprisingly, large institutions can absorb these costs more easily than community-based lenders.

Policy makers in Washington, Congress and regulators alike, hear from representatives of the big banks every day. These large banks speak through lobbyists, trade associations comprised exclusively of large banks and through trade associations that have a mix of large and small members. Their concerns span a broad spectrum, from capital requirements to ensuring their dominant role in the mortgage market is retained.

CMLA member companies understand change is inevitable. They recognize it is imperative to help ensure the coming changes in regulations and secondary market requirements effectively consider the impact on their daily business operations. CMLA helps make that happen.

CMLA’s 2015 Agenda includes the following priorities:

Regulatory Relief – The only lender Association to have proposed regulatory relief legislation, CMLA would, in part:

  • Amend problematic Dodd-Frank provisions
  • Require a uniform definition of small mortgage lender and small servicer
  • Grant regulatory relief to all small lenders, both banks and non bank lenders alike

Lower Cost of Mortgage Financing – Support actions that could immediately lower costs of mortgage financing through the GSEs:

  • Lowering GSE guaranty fees
  • Reducing or eliminating loan level fees
  • Increasing risk sharing with the private sector to lower borrower costs and reduce taxpayer exposure

RESPA-TILA Combined Disclosure – The October 1, 2015 effective date is also the seasonal peak of mortgage closings. This new compliance burden threatens significant negative impact on CMLA member companies. CMLA is advocating:

  • An extended implementation date
  • A one-year no-enforcement policy for missteps that occur as part of a good faith effort
  • A right-to-cure provision to allow lenders to cure good-faith mistakes in the combined disclosures with an appropriate power of attorney from the borrower

Recapitalization of the GSEs/GSE Reform – The current GSE preferred stock purchase agreement with the U.S. Treasury requires GSE earnings to be remitted to the U.S. Treasury and existing capital to be reduced over time, leaving both GSEs under-capitalized and at risk. CMLA is seeking:

  • A modified agreement to allow the GSEs to retain current capital
  • Increased capital levels going forward to avoid unnecessary risk, structured to will guarantee equal access for small lenders
  • Work toward meaningful GSE reform with a structure that will guarantee equal access for small lenders