Magazine article American Banker

Mortgage Leaders Call for Industry Unity, Slam DOJ Overreach

Magazine article American Banker

Mortgage Leaders Call for Industry Unity, Slam DOJ Overreach

Article excerpt

Byline: Tana Tymesen

SAN DIEGO -- Mortgage industry leaders sounded a call for unity as the business reels from mounting compliance burdens, aggressive enforcement actions and ongoing demographic shifts.

Bill Cosgrove, the outgoing chairman of the Mortgage Bankers Association, spoke of grassroots activism within companies and collaborating with consumer advocate groups as ways to "fortify [the industry's] voice."

"Drive activism through your company culture," Cosgrove said Monday at the trade group's annual convention in San Diego. "Don't let strangers in Washington and state houses determine the direction of your companies."

David H. Stevens, the group's president, virtually came out swinging. While preaching collaboration and open dialogue across the industry, Stevens also pledged to "shine an aggressive spotlight on abusive enforcement."

Specifically, Stevens called out the Department of Justice for its use of the Federal False Claims Act, a piece of legislation designed to protect the Union Army from fraud during the Civil War, "to apply treble damages against lenders for originating an FHA loan with even the most minor of errors."

"As long as the current public policy environment and public discourse continues, it only perpetuates the lack of trust in the financial services system," Stevens said. "We're going to be stuck in an environment where the very same families some advocates care about most will be the ones blocked from that opportunity. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.