WASHINGTON – (RealEstateRama) — Rep. John Ratcliffe (R-Texas) voted today for the passage of the Community Institution Mortgage Relief Act of 2017 (H.R. 3971) in the U.S. House of Representatives. This bill will reduce compliance costs for smaller community financial institutions by exempting them from certain escrow or impound requirements.
Specifically, H.R. 3971 requires the Consumer Finance Protection Bureau (CFPB) to increase the escrow asset threshold to $25 billion. It also prevents the CFPB’s mortgage loan servicing and escrow requirements from being imposed on servicers of 30,000 or fewer mortgage loans.
“As one of the most vocal critics in Congress of the CFPB’s overregulation, I’m incredibly grateful for the progress being made to unwind the burdens being imposed on smaller community financial institutions across the country,” Ratcliffe said.
“By peeling away the vast layers of red tape that were put in place by the Obama-era CFPB, we’re ensuring consumers have access to mortgage credit and that small banks and credit unions won’t be run out of business due to unnecessary compliance costs.”