The American Bankers Association sought actions last week in a letter to the Consumer Financial Protection Bureau that seek immediate relief for banks that offer mortgage products. The letter, written by Frank Keating, ABA president and CEO, stressed the burden mortgage lenders are experiencing, and the fear it is reaching an unsustainable level.
“The current regulatory environment is proving excessively burdensome for banks that offer mortgage products, and ABA is extremely concerned about the ability of community banks to continue to offer safe, high quality mortgage products as they have in the past.”
Addressed to Raj Date, special advisor currently in charge of the bureau, the letter urges three main considerations: First, that the CFPB set a timetable for implementation of mortgage rules under Dodd Frank; second, that it review comments on the ability-to-repay proposed rule in a timely manner; and third, that it clarify “confusing” provisions in the Truth in Lending Act rules that govern loan officer compensation.
“Our community bankers tell us very emphatically that the regulatory compliance burden is reaching the point where many are seriously questioning the viability of the community bank business model, and all banks report that they are analyzing the continued feasibility of particular products and services, particularly in mortgage lending,” the letter said.
View a copy of the letter.
Written by Elizabeth Ecker