Mortgage Brokers to CFPB: We Do Not See a Level Playing Field

A major association of mortgage brokers addressed the Consumer Financial Protection Bureau this week stressing the need for broker representation on the CFPB’s consumer advisory board. Providing advice to the CFPB on topics regarding mortgages, appraisals, banking and credit reporting, among others, the boards lack any representation from those industries, wrote the National Association of Independent Mortgage Professionals in a letter to CFPB Director Richard Cordray. 

“I was disappointed to learn that mortgage brokers, real estate appraisers, mortgage bankers, credit reporting agencies and settlement agents were all excluded from the board,” writes NAIHP President Marc Savitt. “As you are aware, these groups are small business, Main Street professionals, who are involved with consumers on a day to day basis, with respect to the home mortgage process.”

The letter goes on to highlight: “These are the very groups who are currently facing an onslaught of new rules and regulations and as licensed professionals—have been denied a seat at the table. In our opinion, this does not represent a level playing field.” 

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The board, announced in September, includes members from many different industries, as well as legal representation, academics and former members of government. The board selection is hardly well-rounded, NAIHP writes, noting representatives from organizations such as the Center for Responsible Lending and Self Help Credit Union. 

“On behalf of small business housing professionals, I’m requesting an additional ‘council’ be established, which represented mortgage brokers, appraisers, mortgage bankers, credit reporting agencies and settlement agents,” Savitt wrote. “Moreover, each of these professions should be afforded a seat on the Consumer Advisory Board itself.” 

View a copy of the letter, via the Niche Report

Written by Elizabeth Ecker