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New AML Rules Raise Concerns for Nonprofit Mortgage Lenders
By Brian Monroe
printThe costs associated with new federal rules requiring mortgage firms to adopt anti-money laundering programs could drive some nonprofit lenders out of the market, companies say. On Tuesday, the department's Financial Crimes Enforcement Network (FinCEN) published final rules that require non-bank residential mortgage lenders to draft written policies, train employees and audit their efforts to shield themselves from money launderers. The rules, which take effect in April, will impact approximately 31,000 non-bank lenders, including nonprofit companies. Some nonprofit lenders working with low-income households may be unable to shoulder additional regulatory costs, said Patty Baker, a mortgage lender at Manna Inc.,...
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