The Mortgage Bankers Association has come out in opposition of the House Financial Services Committee’s decision to create a new oversight committee to regulate the credit industry, which includes the payday loan industry.
In a statement released following the passage of the Consumer Financial Protection Agency by the subcommittee last month, MBA Chairman, Robert E. Story, Jr. released a statement expressing “regret” that the agency had been approved.
Story said the MBA supported a uniform reform of lending standards across the country, and had even developed its own proposal that would minimize regulatory gaps by creating a federal regulator for independent mortgage banks.
“Instead, the bill, as approved by the committee, would continue today’s patchwork of state and local laws that present implementation challenges for lenders who operate in multiple states and lead to increased costs for consumers,” he added.
He concluded that the creation of a national regulator for mortgage banks would not only provide better protection for consumers, but would empower existing regulators to continue overseeing financial institutions.
