ICBA strongly supports the CFPB’s interim final rule, which will expand access to credit by easing regulatory burdens on community banks that operate in rural or underserved areas and hold mortgages in portfolio.
Washington, DC (PRWEB) March 22, 2016
Independent Community Bankers of America® (ICBA) President and CEO Camden R. Fine released this statement on today’s interim final rule from the Consumer Financial Protection Bureau.
“ICBA strongly supports the CFPB’s interim final rule, which will expand access to credit by easing regulatory burdens on community banks that operate in rural or underserved areas and hold mortgages in portfolio. This rule implements an ICBA Plan for Prosperity provision that Congress passed last December in the FAST Act transportation law.
“The updated rule expands the number of community banks eligible for exemptions on mandatory escrows for higher-priced mortgages and Qualified Mortgage safe harbor status for balloon payment mortgages they hold in portfolio. Community banks that are small creditors will be able to continue to offer balloon payment mortgages and be exempt from mandatory escrow rules for higher-priced mortgages if they make at least one loan in a rural or underserved area. This will allow many more community banks in rural or underserved areas to meet the needs of their customers and communities.
“The CFPB rule marks another important step in the enactment of ICBA-advocated regulatory changes broadening small-creditor and rural designations under the CFPB’s Regulation Z mortgage rules. ICBA will continue calling on policymakers to implement QM safe harbor treatment and relief from mandatory escrows for all community bank loans originated and held in portfolio.”
The Independent Community Bankers of America®, the nation’s voice for more than 6,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit http://www.icba.org.
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