|Aug 24, 2016 10:45 ET
Mortgage groups seek voice on CFPB panel
Two mortgage industry associations say nonbank and community mortgage lenders have little voice on the boards that advise the Consumer Financial Protection Bureau (CFPB).
In a letter Wednesday, the Community Mortgage Lenders of America (CMLA) and the Community Home Lenders Association (CHLA) said that mortgage bankers have been notably underrepresented on the Bureau’s Advisory Boards & Councils.
The CFPB last week announced several new appointments to its advisory boards, which included 15 members employed by regional banks and credit unions. CMLA and CHLA, however, contend that mortgage issues get short changed on the agenda.
Both organizations urged the CFPB to form a separate board that is dedicated exclusively to mortgage banking issues, and includes representative from nonbanks and community lenders.
“Over the last several years, as a number of Dodd-Frank rules have been implemented by CFPB, mortgage bankers have expressed concerns both about the guidance and clarity of these rules and the challenges of being fully compliant,” the letter said. “Thus, we believe it is especially critical for the CFPB to create a forum for community mortgage bankers to communicate on these issues.”
CMLA Executive Director Glen Corso said one of CMLA’s members attempted to get on the community bank advisory board, but was passed over. That person runs the mortgage division for a community bank.
“This member told me he reviewed the minutes of prior meetings of the community bank advisory council and said that only a small portion of their agenda dealt with mortgage issues, so our point is that we want an advisory council focused on mortgage issues, composed of lenders that utilize the mortgage banking business model,” Corso said. “That would include nonbanks, but also a number of community banks as well.”
A CFPB spokesperson didn’t immediately return a request for comment.
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