Rep. Blaine Luetkemeyer (R-Mo.) introduced legislation last Thursday that is designed to provide regulatory relief to community banks and credit unions by raising the CFPB’s mortgage servicing exemption threshold from 5,000 to 20,000 loans serviced per year.
Lenders with less than $10 billion in assets would be exempt from the CFPB’s mortgage escrow requirements and qualified mortgage rules, as long as the loans are kept on the institution’s balance sheet for more than three years.
Additionally, the legislation would eliminate a requirement that financial institutions ensure automated clearinghouse payments are not a prohibited transaction.
The Independent Community Bankers of America recently expressed support for Luetkemeyer’s legislation, which promotes elements of the ICBA’s Plan for Prosperity.
“Relieving the nation’s community banks and the communities they serve from crippling regulatory burdens is essential to helping our economy recover,” ICBA President and CEO Camden R. Fine said. “H.R. 1750 which features high-priority provisions from ICBA’s Plan for Prosperity, would make common-sense reforms to help our nation’s economy grow from the ground up. We strongly encourage members of Congress to support this important legislation.”
The bill would further require a cost-benefit analysis of rules from the SEC, exempt community banks from certain Sarbanes-Oxley mandates and reduce overlapping in annual privacy notices to eliminate paperwork.