The Community Home Lenders of America (CHLA) today released a report at the Lenders One Summit 2023 that conclusively rebuts myths that Independent Mortgage Bankers (IMBs) are not adequately regulated or pose systemic or taxpayer risk.
“As the only national association that exclusively represents IMBs, CHLA believes it is critical that policy makers in Washington have a clear understanding of Independent Mortgage Banks and their business model,” said Scott Olson, Executive Director of CHLA.
“This CHLA Report highlights myths that IMB critics have spun about IMBs. The report explains why both the facts and the predictions of this “IMBs are Risky” crowd have been proven wrong – and how driving smaller IMBs out of business harms consumers.”
“We appreciate that CHLA is using the Lenders One Summit 2023 to release this important and timely report,” said Justin DeMola, CMB, President of Lenders One. “This report makes it clear to policymakers in Congress and federal agencies that additional unnecessary regulatory burdens on IMBs would increase industry concentration, which is harmful to consumers.”
The CHLA Report includes:
- A detailed rebuttal of the myths being spread by some in Washington that IMBs are risky or unregulated.
- A detailed analysis why more regulation of small and mid-sized IMBs is not justified by the minimal risk they pose.
- A comprehensive list of financial and consumer regulations that IMBs are subject to.
- How IMBs are subject to significantly greater consumer protections than banks, in areas like CFPB supervision, loan originator licensing, and loss mitigation to keep defaulted borrowers in their home
- An explanation of how unnecessary IMB regulatory hurts consumers by driving out smaller IMBs and increasing industry consolidation – which results in less competition, fewer consumer choices, and higher rates and fees.