CRA for IMBs?

We published an opinion piece last week from Craig Thomas, policy director of the Community Home Lenders Association, in which he argued that the idea of applying the standards of the Community Reinvestment Act to independent mortgage banks is "a solution in search of a problem."

Was this newsletter forwarded to you? Sign up here. Good afternoon —   We published an opinion piece last week from Craig Thomas, policy director of the Community Home Lenders Association, in which he argued that the idea of applying the standards of the Community Reinvestment Act to independent mortgage banks is "a solution in search of a problem."   The debate over CRA for IMBs was reignited by the state of New York, which passed legislation on Nov. 1 that extends CRA requirements to IMBs, despite the fact that IMBs do not maintain a physical presence within communities.   Thomas points to data for Massachusetts — which imposed CRA requirement on IMBs in 2007 — to bolster his argument that CRA isn't needed. "And HMDA statistics also suggest it had no positive impact on IMB lending to underserved borrowers. The IMB share of mortgage loans to low and moderate income borrowers in Massachusetts increased from 27% in 2008 to 62% in 2020 — a significant increase to be sure, but below the national average increase in IMB lending to such borrowers, from 29% to 67%."   Instead of CRA, Thomas offers three alternative actions that could increase mortgage lending to underserved borrowers.   As always, I welcome your thoughts on the New York legislation and whether you think CRA is appropriate and effective for IMBs.   Until tomorrow —   Sarah Wheeler HousingWire Editor in Chief  Fannie Mae's Steve Holden on helping renters become homeowners Mortgage Steve Holden, vice president of single-family analytics at Fannie Mae, discusses what lenders can do to help more renters become homeowners. Listen now Home sale prices hit all-time high Agent, Real Estate Home sale prices for the four-week period ending November 14 rose to $359,975, a 14% year-over-year increase. The number of active listings was also down 22%. Easy for Everyone "We hear a lot of complaints when we've rolled out new technologies. Not with Snapdocs. It's been refreshing to have a technology that benefits so many teams we work with." - David Jagneaux, Closing Manager/VP GMFS. Learn Why! Sponsored by Snapdocs MISMO searches for participants for closing initiative Closing, Title MISMO recently announced that it is looking for participants for an initiative focused on standardizing pre-closing title document data sets. Implementing social media policies for LOs that balance risk and maximize returns Presented by Black Knight Arming your origination team with the right technology and training to manage consistency, compliance and brand recognition on social media is worth the investment – not to mention the peace of mind. Learn more here! HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039 Manage preferences

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