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CHLA Releases it annual 2023 IMB Report

CHLA Releases its 2023 “IMB Report”

Report chronicles the performance of IMBs, explains what IMBs are, the extensive regulation IMBs are subject to, and highlights CHLA advocacy efforts on behalf of IMBs. 

(Washington, D.C) — The Community Home Lenders of America (CHLA) today published its annual independent mortgage bank (IMB) report for 2023 which aims to educate the public, the press, Congress, and federal officials about the importance of IMBs.

To foster a healthy mortgage landscape in 2024, CHLA offers these key takeaways to Congress and federal officials responsible for mortgage policies (Page 3):

  1. The Fed and the GSEs should buy mortgage loans to restore historical rate spreads vs. Treasuries.
  2. Consumers benefit from a broad range of IMB lenders, which increases competition and consumer choice.
  3. IMBs – particularly smaller IMBs – pose virtually no taxpayer or systemic risk.
  4. Congress and/or federal policymakers should adopt CHLA’s Consumer Bill of Mortgage Rights.
  5. Duplicative, unnecessary regulation undermines smaller IMBs’ ability to serve homebuyers.
  6. IMBs continue to face financial headwinds – but are downsizing to adapt to market forces.

“Since the 2008 financial crisis, IMBs have emerged as an essential channel in housing accessibility and have decisively outperformed banks originating and servicing mortgage loans to first-time homebuyers, minorities and other underserved borrowers,” said Scott Olson, Executive Director of CHLA. “With this report, we aim to better inform policymakers and the public on the benefits of IMBs and why supporting our industry ultimately benefits millions of Americans.”

2023 was a year of a public advocacy success for IMBs, including:

  • FHA cutting the annual FHA premium by 30 basis points
  • Freddie Mac announcing a fee-based repurchase pilot that offers indemnifications in lieu of repurchases
  • Congress ending the overcharging of VA mortgage loan fees
  • Divestitures following the FTC challenge to ICE’s purchase of Black Knight
  • FHFA terminating the DTI component to LLPA pricing

These were priority issues for CHLA and its members. Refer to pages 4-5 for a comprehensive overview of these issues and insight into CHLA’s leadership.