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Regulation

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The Consumer Financial Protection Bureau requests data that if used too zealously could cause a massive restriction in the market and a reduction in the type and amount of lenders.
ON HER RADAR: "The institutionalization of the single-family rental market…merits close monitoring,” says Rep. Maxine Waters, ranking Democrat on the House Financial Services Committee.
Advocates blame the securitization-financed, institutional-scale landlords for astronomical rents and poor maintenance and call for Congressional hearings and government oversight.

"We are jumping through hoops every day to comply with regulations," said Mike McHugh, the president and CEO of Continental Home Loans, in Melville, N.Y.
Independent mortgage lenders are concerned that regulators will use the report as an excuse to raise minimum net worth requirements for smaller lenders.

GONE AWRY: "The mini-correspondent structure…is probably not working the way it is supposed to be," says Jason Madiedo.
The Consumer Financial Protection Bureau's guidance on the growing mortgage mini-correspondent business has scared some originators to the point that they are considering converting to branches of larger retail lenders.

"Whenever you see 'consumer relief,' it is usually investor money," says Vincent Fiorillo, global sales manager at DoubleLine Capital LP in Los Angeles.
These investors complain they get little say or direct recompense in government settlements with big banks over misrepresentations of mortgage securities like the Department of Justice's $7 billion deal with Citigroup.

Under the Consumer Financial Protection Bureau plan, lenders would need to respond to virtually every public complaint — even those by consumers, disgruntled employees, and competitors that abuse this forum.
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