Community Institution Mortgage Relief Act of 2017

Bill 115 hr 3971, also known as the Community Institution Mortgage Relief Act of 2017, aims to provide relief to community financial institutions that are facing challenges in complying with certain mortgage regulations. The bill specifically targets smaller financial institutions, such as credit unions and community banks, that may not have the resources to fully comply with the regulations set forth by the Consumer Financial Protection Bureau (CFPB).

The bill proposes to exempt these community financial institutions from certain mortgage regulations, such as the Ability-to-Repay and Qualified Mortgage rules, in order to alleviate some of the regulatory burden they face. This exemption would only apply to institutions that have less than $10 billion in assets and originate fewer than 20,000 mortgages per year.

Supporters of the bill argue that these smaller institutions play a vital role in providing access to credit for underserved communities and that the current regulatory environment is hindering their ability to do so. They believe that by providing relief from certain regulations, these institutions will be better able to serve their communities and promote economic growth. Opponents of the bill, however, argue that exempting these institutions from certain regulations could potentially put consumers at risk by allowing for riskier lending practices. They believe that the regulations put in place by the CFPB are necessary to protect consumers from predatory lending practices and ensure the stability of the mortgage market. Overall, the Community Institution Mortgage Relief Act of 2017 is a contentious piece of legislation that seeks to strike a balance between providing relief to smaller financial institutions and protecting consumers. It will be important for lawmakers to carefully consider the potential impacts of this bill on both the financial industry and consumers before making a decision on its passage.