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CRAMER: Community Bank Regulatory Relief Bill Passes House

Dec 7, 2017
Press Release

Recording: Audio

WASHINGTON, D.C. – Congressman Kevin Cramer supported a bill today bringing regulatory relief to community banks for certain escrow requirements.

H.R. 3971, the Community Institution Mortgage Relief Act, would exempt lenders from certain escrow and impound requirements if they have consolidated assets of $10 billion or less, and hold the mortgage on their balance sheet for three years. The bill would also direct the Consumer Financial Protection Bureau (CFPB) to exempt mortgage servicers from certain requirements related to mortgage loan servicing and escrow account administration if they service 30,000 or fewer mortgage loans annually.

“For North Dakotans, this is an access to banking services issue. When community banks are dropping mortgage services altogether in order to stay afloat, consumers across rural America are the ones who lose out. The House has passed numerous bills over the years to bring financial relief to our community financial institutions. I hope the Senate this Congress can finally follow suit.”

Escrow requirements enacted by the CFPB have caused small lenders to increase mortgage costs on consumers or exit the mortgage market entirely. Unlike larger banks who have the resources and economies of scale to handle such requirements, smaller institutions lack the human or financial resources necessary to comply with many of burdensome regulations placed on them by the CFPB and the Dodd-Frank Consumer Protection Act.