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Small, community mortgage lenders to Congress: Give us a break

Nondepository financial institutions struggling with expense and operational challenges posed by regulatory compliance, leaders testify at hearing

Small, community-based, nondepository mortgage lenders are struggling to stay afloat after being bombarded with a wave of federal lending legislation and regulation in the past few years, a group of lending industry leaders told members of Congress yesterday. The House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit conducted a hearing to provide an overview of the current regulatory climate and how it affects the ability of community financial institutions to provide financial services or products to consumers. Randy Neugebauer “While we often talk about regulatory burdens in compliance terms, burdensome, duplicative and unnecessary supervision and examination can also burden community-based lenders,” said Rep. Randy Neugebauer, R-Texas, chairman of the committee. “It is important for this committee to examine the regulatory structure of these products, and understand how a federal regulation impacts credit access and product...