Independent MortgageMortgage independent
Mortgage Independent is one of the oldest mortgage banks in Iowa. Our many years of mortgage expertise enable us to help you find the best mortgage for your individual needs. From our headquarters in Urbandale, Iowa, we can service the whole state of Iowa. You can apply on-line, in person, by telephone or by e-mail.
It is our great pleasure to offer our customers sophisticated and enlightening choices that help them make the most educated choices.
Direct discussion about independent mortgage banks | 2018-08-09-09
Lately, independent mortgage lenders have been more and more in the headlines. A decade after the 2008 real estate crises, the sharp IMB mortgage credit trend continues as bank signs of a reversal of their withdrawal from our mortgage majors are weak. The reason community-based IMFs thrive is that they are small companies whose proprietors and staff reside and work in the municipalities in which they grant loans, and who provide personalised mortgage credit and support to the borrower they manage.
Simultaneously, some stakeholders have flagged up whether this increase in IMFs' overall equity exposure has brought with it an increase in risks that we should be worried about and whether this could reduce the leading roles of IMFs in granting mortgage lending to low and middle class buyers, minorities and under-served home buyers.
The Community Home Lenders Associations, as a nationally based organization that represents only IMFs, believe it is important to inform policymakers in the District of Columbia about IMFs, to understand why and how IMFs lead the way in the provision of loans, and to evaluate whether their expanded roles pose a genuine monetary, systemsic, or consumer-related threat.
Recently, CHLA released its 2018 Annual Survey of IMFs to answer these issues. It describes the increase in IMBs' Federal Housing Administration slice of GDP from 57% in 2010 to 85% in 2016, Ginnie Mae's slice of GDP from 18% in 2009 to 78% in 2018, and similar, though less marked, Fannie Mae and Freddie Macs.
There is a clear refutation in the CHLA document of a budding legend that has been circulated by some, such as the Brookings Institution in its March paper, that the IMB' s expansion is a threat that we should be worried about. IMFs represent almost no tax-payer risks because, unlike banking institutions, they are not FDIC-insured.
Also, the federal mortgage programmes that mainly use IMFs, such as FHA, have tough asset management industry reference points and finance supervision. IMFs represent a low level of systematic risks. With the exception of half a dozen of the biggest companies, it would hardly cause a wave if one or even a series of IMFs went bankrupt. The CHLA reports also include a four-page, side-by-side diagram that compares the mortgage regulations of IMFs and banking institutions.
This graph shows what few people realise - that IMFs are actually more strongly governed than banking when it comes to protecting consumers. IMFs must adhere to all government regulations that require compliance by banking and all other lending institutions. However, at the point of user interaction, IMFs are much more strictly controlled.
Mortgagors at IMFs must: On the other hand, bank LOSs are exempted from all these important SAFE Act provisions. Similarly, 100% of IMFs are supervised and enforced by the Consumer Financial Protection Bureau - while 98% of financial institutions are exempted from such regulation. In the same weeks that this paper was published, CHLA sponsors a round table on IMFs for convention personnel, government officials and D.C.-based federations and think tankers.
We have appointed representatives of IMFs, regulatory or supervisory IMFs and other residential property professionals. Discussion participants discussed how IMFs do businesses, how they are comprehensively governed and what kind of risk they are. EMFs dangerous? In conclusion, I would like to address a view expressed by some that IMFs are not well organised because they are not banking institutions.
Members of our board were specialists from the main regulatory and supervisory authorities of IMFs - among them government regulatory bodies, FHA, Ginnie Mae, Fannie and Freddie. Those professionals demonstrated how IMFs are comprehensively governed - encompassing net asset obligations, fiscal sanctions for non-compliance with subscription rules, QC compliance and supervision, tooth key figures, and more.