CHLA challenges FHFA IG report on risk from smaller nonbank lenders – Housing Wire 7/23/14

Report lacks evidence to support claims, ignores other key factors 

July 23, 2014

From this referenced article in Housing Wire:  “The Community Home Lenders Association is challenging the Federal Housing Finance Agency

IG report issued last week which had raised concerns about risks to the GSEs from increased loan purchases from smaller non-bank mortgage lenders.  ‘By implication, the IG report seems to be pushing for more loans to be done at the big TBTF banks by stating the small non-bank lenders are riskier for the enterprises and with little or no evidence to support the claim,’ said Bill Giambrone, president of CHLA. ‘Our concern is the FHFA will now pull back on the re-localization initiatives which are truly better for housing and the consumer.'”