Asks Committee to Consider Additional Non-Bank Lender Provisions
WASHINGTON, D.C. – May 19, 2015 – (RealEstateRama) — The Community Home Lenders Association (CHLA) today praised 3 provisions in the Financial Regulatory Improvement Act of 2015, a bill circulated last week by Senate Banking Committee Chairman Shelby, and scheduled for a committee vote later this week. CHLA comments in its capacity as the only national association exclusively representing non-bank mortgage lenders.
“CHLA appreciates the inclusion in Chairman Shelby’s bill of common sense provisions that would make it easier for non-bank community mortgage lenders to continue to facilitate access to mortgage credit for consumers, while preserving core consumer protections,” said Scott Olson, CHLA’s Executive Director. “As the Committee begins consideration of the bill, we would also ask Committee Members to consider adding additional provisions to further these important objectives.”
The bill contains 3 provisions that CHLA supports and has been working for adoption:
- Transitional Licensing. Authorize nationally registered bank mortgage loan originators to go to work for a non-bank lender for a transitional period of time – in order to give time to complete the more rigorous non-bank training, testing, and independent background checks that are not required of bank loan originators. CHLA has supported and worked for adoption of such a provision for several years.
- RESPA/TILA Changes. Provide lenders with a grace period for compliance with the August 1st scheduled RESPA/TILA mortgage disclosure changes.
- Prompt Mortgage Closings. Waive the 3 day waiting period to close in cases when loan term changes result in a lower Annual Percentage Rate (APR) to the borrower.
CHLA believes the bill could be strengthened by adding 2 provisions to extend regulatory relief currently enjoyed by smaller banks to include comparable provisions for non-banks:
1. Prioritize CFPB resources by exempting small non-bank mortgage lenders not subject to regulatory actions from CFPB exams (bill already includes streamlining of bank exams).
2. Extend existing bank small servicer servicing exemptions to include non-banks.
Contact: Scott Olson