Washington, D.C., August 24, 2016 – The Community Mortgage Lenders of America (CMLA) today expressed its concern that none of the Advisory Boards and Councils of the Consumer Financial Protection Bureau (CFPB) contained representatives from mortgage banking companies and urged CFPB to establish a Community Mortgage Banking Advisory Council.
In a joint letter with the Community Home Lenders Association (CHLA) the CMLA said “We … request the formation of a Community Mortgage Banking Advisory Council, which should include strong representation from community mortgage bankers. We also request the addition of at least one community mortgage banking representative on the Consumer Advisory Board.”
The letter noted, “The term “mortgage banking” refers to both a business model in the mortgage industry of “originate and sell”, as well as to the fact that most companies that follow this model are, in regulatory terms, “non bank lenders”. The lenders that utilize this business model are a vital part of the mortgage lending industry and in our review of the membership of the CFPB’s existing Advisory Boards and Councils, are completely unrepresented on those bodies.”
The letter pointed out that mortgage bankers originate approximately 50% of all residential mortgages in the U.S. and said, “We believe that adding community mortgage bankers to these Advisory Boards will help the CFPB in fully understanding the critical role that they play in mortgage markets, and why their preservation benefits consumers and the communities in which they live.”
The letter went on to say that the none of the existing CFPB Advisory Boards and Councils had mortgage lending as a focus, “We believe the significance of the mortgage lending industry, both to consumers and within the financial community, warrants an advisory board with a focus on mortgage topics.”
About the CMLA
CMLA is the only trade association solely dedicated to advocating for independent, community-based residential mortgage lenders. Founded in 2009, The CMLA is committed to the preservation of a thriving independent mortgage lending sector, which increases competition in the industry and, thus, provides borrowers with greater choice and lower costs. The CMLA membership includes lenders nationwide that, collectively, originate more than $100 billion worth of residential mortgage loans annually. The CMLA works to ensure the interests of its members are effectively represented before members of Congress, Federal regulators and the Executive branch.
For more information, please visit www.thecmla.com and/or direct policy and member inquiries to Glen Corso at 703.467.0420 or firstname.lastname@example.org.