New York State is exploring the expansion of the Community Reinvestment Act (CRA) to include nonbank mortgage lenders in its scope of regulation. This proposed change would shift the focus of regulatory assessments from the traditional physical branch presence of lenders to the actual sites where nonbanks originate their loans. This move reflects a growing recognition of the significant role nonbank entities play in the mortgage market, as they account for an increasingly large share of loan origination activities.
Key elements of the proposed regulation include:
– **Focus Shift**: Regulatory tests will now evaluate nonbank lenders based on loan origination locations, rather than branch presence.
– **Sector Impact**: The expansion aims to hold nonbank mortgage lenders accountable to community investment standards.
– **Market Dynamics**: Nonbank entities are becoming significant players in the mortgage sector, prompting a need for more comprehensive regulation.
This initiative could pave the way for a more equitable lending landscape, ensuring these lenders contribute positively to the communities they serve.
You can read this full article at: https://wrenews.com/new-york-state-considers-expanding-cra-law-to-cover-nonbank-mortgage-lenders/
Note Servicing Center provides professional, fully compliant loan servicing for private mortgage investors so they can avoid the aggravation of servicing their own loans and just relax and get paid. Contact us today for more information.
