Rob Chrisman 9/11/15 – Cost of Regulation for Banks and Non-Banks (Excerpt)

At this point every lender, depository bank or not, had better be a compliance company that happens to do mortgages. That is not a terrible thing, but there is a cost – typically borne by the consumer. Such is life. But the Community Home Lenders Association released a detailed side by side chart comparing regulation of non-bank mortgage lenders to banks.  The comparison shows that non-banks are more regulated on the consumer front (SAFE Act and no exemptions from CFPB exams) – while there is virtually identical regulation on the servicing and net worth front when it comes to federal agency loans – which is what non-banks concentrate on. It is plain wrong to think that non-bank mortgage lenders are not really regulated.

CHLA in the News