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CMLA Weekly News Buzz - February 11, 2021

Published: February 11, 2021

CMLA News Digest
Welcome to the CMLA News Buzz!
This is your weekly hub of information about what's going on at CMLA.
 
February 11, 2021
 
 
CMLA News Highlight of the Week!
 
Help Us Oppose Non-Bank Servicing Regulation in Colorado!
 
The Colorado General Assembly will be introducing a bill to regulate non-bank servicers this month and this regulation will have a negative impact on the mortgage industry. We will be asking you to contact your representatives and implore them to oppose the legislation as it is currently drafted.
 
Non-Bank Servicing Regulation Fact Sheet

In 2021, the General Assembly will consider legislation that would expand the Colorado UCCC Supervised Lender Licensing program to incorporate all first mortgage loans in the state of Colorado, regardless of the interest rate of the loan.  The Colorado Mortgage Lenders Association strongly opposes this legislation as drafted.
 
Background
 
  • The bill as drafted would require non-bank mortgage servicers to submit to regulation by the Attorney General through the Uniform Consumer Credit Code (UCCC)
  • The UCCC Supervised Lender Licensing program was created and is intended to apply to high interest rate loans (where the Annual Percentage Rate exceeds 12%)
  • The vast majority of first mortgage loans (insert $ outstanding balance) in Colorado have interest rates below 12% and should not be incorporated into the UCCC
 
The CMLA opposes this effort because:
 
  • It Is Unnecessary
  • As the twenty-first most populist state, Colorado ranks forty-ninth in mortgage foreclosures.
  • The CMLA is not aware of any complaints or problems with the current law that would necessitate this additional regulator, nor has a Sunrise Report been conducted to determine whether regulation is appropriate.
  • The UCCC similarly could not point to complaints that would justify additional regulation
  • The national Conference of State Bank Supervisors is already in the process of developing prudential standards for regulating non-bank servicers.
  • There is ample federal oversight for non-bank servicers, specifically by the Consumer Financial Protection Bureau (CFPB), which has a robust consumer complaint process, regulatory and examination authority, and over 1,000 pages of regulations directly addressing the servicing of mortgage loans.
  • State Attorneys General and the CFPB are authorized to enforce Dodd-Frank and the rules and regulations of the CFPB.
  • The UCCC is Not an Appropriate Regulator
  • The Colorado Division of Real Estate (“DRE”) is the mortgage industry’s prudential regulator and as such is better positioned to regulate this industry without burdensome, duplicative, or conflicting regulations. Regulation by the Office of the Attorney General will lead to regulation by enforcement.
  • No other mortgage regulatory program of this nature is housed in a state Attorney General’s office. In almost every state mortgage and servicing regulation falls under a singular regulator and license.
  • It will Lead to Consumer Confusion and Increased Cost
  • Adding an additional regulator in Colorado will create an ineffective and complicated complaint process for Colorado consumers because the DRE already has a complaint collection process.
  • Increased licensing fees and compliance costs will lead to increased costs for borrowers, exacerbating the state’s affordable housing problem.
 
Please watch your email for further communication about a Call to Action campaign regarding this legislation. If you have questions about this legislation or would like to join CMLA's Legislative and Regulatory Affairs Committee (LARAC), please contact us at: advocacy@cmla.com.
 
 
 
What's Happening in Membership
 
Need to sign up or renew your membership? Try our NEW Online Application.
 
Sindi Lillis - Membership Manager
We'd like you to meet our Membership Manager, Sindi Lillis. She is available to answer all of your membership questions and will be notifying you when your membership is up for renewal.
 
Sindi Lillis
303-773-9565
 
Become a CMLA Member
Renew Your Membership
Say HELLO! to our Featured Members of the Week
 
 
Gateway Correspondent Lending
Gateway Mortgage Group,
Correspondent Lending
Renewing Member!
Member since 2013
 
Suited Connector
Suited Connector
Renewing Member!
Member since 2016
 
 
CMLA Education and Events
 
CMLA Upcoming Events
CMLA has several education trainings, networking events and webinars in the works for 2019. Check back frequently
for more information.
 
CMLA Event Page
 
News from Around the Industry
 
February 9th - MBA, Trade Groups Urge Homeowner Relief in COVID-19 Package
The Mortgage Bankers Association and (NUMBER HERE) other industry trade groups urged Congress to include direct assistance to homeowners with COVID-19 hardships in any upcoming economic stimulus package.
 
February 9th - MBA: Loans in Forbearance Fall to 5.35%
The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey reported loans now in forbearance decreased by 3 basis points to 5.35% of servicers’ portfolio volume as of Jan. 31 compared to 5.38% the prior week. MBA estimates 2.7 million homeowners are in forbearance plans.
 
February 8th - MBA RIHA Study Reveals Progress, but 5 Million Renters and Homeowners Missed December Payments
WASHINGTON, D.C. (February 8, 2021) - Five million households did not make their rent or mortgage payments in December, and 2.3 million renters and 1.2 million mortgagors said they feel they are at risk of eviction or foreclosure, or would be forced to move in the next 30 days. That is according to fourth-quarter 2020 research released today by the Mortgage Bankers Association's (MBA) Research Institute for Housing America (RIHA).

The new fourth-quarter 2020 findings on housing and student loan payments come from RIHA's study, Housing-Related Financial Distress During the Pandemic, which was previously released in September 2020 (
second-quarter findings) and October 2020 (third-quarter findings).
 
February 2nd - A Conversation with Charmaine Brown, MBA Director of Diversity & Inclusion
The Mortgage Bankers Association recently hired mortgage industry veteran Charmaine Brown to fill its newly created position of Director of Diversity and Inclusion. Brown is responsible for developing, promoting and advancing diversity and inclusion programs for the real estate finance industry.
 
February 2nd - Mortgage Action Alliance Issues Call to Action on Senate Federal Tax Credit Bill
The Mortgage Bankers Association’s grassroots advocacy arm, the Mortgage Action Alliance, issued a Call to Action Friday in support of recently introduced legislation to create a federal tax credit to fuel development.
 
Dieter Raemdonck
CMLA Registered Lobbyist

Dieter Raemdonck is the registered lobbyist for CMLA and his practice is focused primarily on government relations matters at the federal, state, and local levels.
 
Learn More about CMLA's Legislative Efforts
 
Who is CMLA?
 
CMLA Mission Statement
The Colorado Mortgage Lenders Association is an organization committed to responsible homeownership achieved through the practice of integrity-based lending. We serve our community through effective education, principled representation and gracious networking to advance free enterprise and the highest ethical standards in the mortgage lending industry.
 
Meet the CMLA Board
Meet the CMLA Staff