By Thomas Ressler
Smaller banks and nonbanks are rallying behind legislation recently introduced to relieve community mortgage lenders from some of the scrutiny placed on larger banks.
Rep. Roger Williams, R-TX, authored H.R. 5907, the Community Mortgage Lenders Regulatory Act of 2016, and emphasized that community mortgage lenders engaged in traditional mortgage lending were not responsible for the recent mortgage crisis.
Scott Olson, director of the Community Home Lenders Association, noted that while Congress has focused on regulatory relief for smaller banks and credit unions, this bill is an important piece that focuses on nonbank mortgage lenders.
He said the “common sense bill” would provide exemption from Consumer Financial Protection Bureau exams and primary enforcement authority for smaller, responsible nonbank lenders. That’s “the same type of treatment already provided to 99 percent of banks, those under $10 billion in assets,” he added.