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

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  • These are very odd comments.  

    This is the Consumer Financial Protection Bureau, not an association of lenders.  It was designed by a known consumer advocate who does not care if borrowers can or cannot get mortgages as long as everything is done her way.  She knows that what is best for the consumer is best for the banker even if that means charging negative interest (consumer gets interest on loan for borrowing from a lender).

  • Warren,

    I believe that the Emancipation Proclamation was written about a half century after that poem was written and practical elimination of legal slavery in the US a few years later.  Also 18 years after that poem was written the Indian Removal Act of 1830 became law resulting in the Trail of Tears.  You may view the US as being the land of the free at the end of the War of 1812 but you are in the “minority.”

    In the last 170 years many would describe the military draft as anything other than aligning itself to the idea of freedom especially under the principle used by LBJ — the so called Tonkin Gulf Incident.  On and on we could go but why?Some would say the CFPB is the result of the ideals expressed in the poem (and later song) you quote.  You seem to be of a different persuasion.  What constitutes government due diligence in providing “freedom” is in the eyes of the beholder, whether liberal or conservative.   

  • The playing field stopped being level on April 6, 2011.  That’s the day I was inhibited from paying homeowners fees anymore.  Prior to that date, I routinely paid 100% of my clients fees.  After that date, I wasn’t allowed to pay any fee – because I “broker” Reverse Mortgages … after that date, only Direct Lenders are allowed to pay fees.  For the life of me, I don’t understand how that structure benefits consumers.

    The President I’m voting for is the one that’s going to repeal Dodd-Frank.

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