The Independent Community Bankers of America pressured CFPB Director Richard Cordray this week to provide exemptions to community banks from mortgage disclosure rules and new home loan underwriting standards.
America’s community banks have grown increasingly concerned regarding the human and financial costs associated with increased regulation from the 2010 Dodd-Frank Act, StarTribune reports.
Camden Fine, the president of the ICBA, said that the requests are tied to growing fears that the CFPB will not issue regulations that reduce the burden to community financial institutions, as was promised by the agency.
When Cordray took his position at the CFPB, he promised community bankers that he would consider exemptions to some regulations and attempt to minimize the costly compliance and regulatory burdens on these institutions. Fine said that a number of bankers that handle few mortgages are seeking to avoid the new loan form disclosure.
Robert Fisher, the president of New York-based Tioga State Bank, said that the mortgage disclosure rules are feasible for any bank that handles numerous mortgages with people they are unfamiliar with.
“My business operates on a relationship model,” Fisher said, according to StarTribune. “I know my customer. Bank of America and the other megabanks operate on a transactional model.”