Community Mortgage Lenders of America warns: Congress will “pull the plug” on Main Street lenders

The Community Mortgage Lenders of America (CML America) has released a letter (see attached) to congressional leaders warning that proposals under consideration by Congress will have a devastating effect on mortgage lending and increase risk in the mortgage system. "If enacted, the proposals in Congress to impose new capital requirements on Main Street mortgage lenders effectively spells the end of the community mortgage banker, resulting in less competition and fewer choices for borrowers,” said Scott Stern, chairman of CML America. “Under these proposals the mortgage system will become riskier and the local mortgage banker will be extinct. Congress will literally destroy hundreds of thousands of lives if this proposal is approved. We urge Congress to reconsider this ill-advised provision." The letter was signed by 87 community mortgage lenders from CML America and the Community Mortgage Banking Project. The lenders provide home mortgage loans in 30 states, representing over $120 billion in annual mortgage originations. For more information, visit www.cmlamerica.com or www.communitymortgagebankingproject.com.