This article published by Housingwire covers the recent announcement from the Consumer Financial Protection Bureau, proposing a national registry of mortgage lenders. The Community Home Lenders Association (CHLA), the trade group representing non-bank mortgage lenders, is requesting that the CFPB provide exemptions for smaller lenders who are not large enough to enter the registry.

In terms of the proposed registry, small lenders would be required to enter into the registry their company name, parent company’s contact information, the company’s name, the company’s website address, email, and telephone number. The listing would include data about the lenders’ originator volume and origination activities for all major asset classes including FHA, VA, and USDA insured mortgages; all Fannie Mae, Freddie Mac and Ginnie Mae single-family and multi-family mortgages; commercial real estate purchases, refinances and restructures; non-mortgage consumer loans; reverse mortgages and any other loans that trigger notification requirements.

According to CHLA, small lenders would be subject to increased audit, supervision and tracking costs due to the new registry requirements. The proposed registry would require lenders to pay the CFPB an up-front registration fee, on-going renewal fees, and it would allow the CFPB to charge lenders later when lenders make changes in their registration information. This could come with an added cost burden with possible confusion as to how to register and maintain their profile in the registry.

CHLA is asking for an exemption for small lenders and to have the registry only apply to larger banks, considered to be those with more than $2 billion in annual residential mortgage origination activity. Why apply the registry rules to small lenders that currently don’t pose a risk to consumers in the mortgage process? CHLA believes the new registry provides no additional consumer protection, yet it does cost small lenders money and time to implement.

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