The release of the Financial Stability Oversight Council report on nonbank risk hasn’t been greeted warmly in all sectors of the mortgage industry. But there are some positives as Scott Olson of the Community Home Lenders Association points out: “While some press reports on FSOC’s 2019 Annual Report are focused on the purported risks of non-bank mortgage lenders, what is generally being overlooked is its other conclusion that non-bank lenders are critical to the availability of affordable mortgage loans, particularly for low- and moderate-income, minority, and underserved borrowers…”
Olson said CHLA is urging state and local regulators not to overreact to the report “with respect to the regulation of smaller non-bank mortgage lenders – which pose no real systemic risk, but play a critical role in consumer access to mortgage credit.”