The House of Representatives voted 243 to 184 to pass the Home Mortgage Disclosure Adjustment Act (HR 2954)
, which is designed to eliminate compliance regulations imposed on small financial institutions by the Consumer Financial Protection Bureau (CFPB).
HR 2954 will exempt from the CFPB's reporting and disclosure requirements institutions that have originated fewer than 500 closed-end mortgage loans and fewer than 500 open-end lines of credit in each of the two preceding calendar years. A companion bill was introduced in the Senate by Idaho Republican Mike Rounds, but it has yet to pass the Senate Banking Committee.
“Since the inception of Dodd-Frank, our local small banks and credit unions have been forced to, quite literally, pay the price for a crisis they didn’t create,” said Rep. Tom Emmer (R-MN), who first introduced the Home Mortgage Disclosure Adjustment Act in 2015. “I consistently hear from Minnesota’s small community banks and credit unions who are struggling to keep up with burdensome compliance costs. Some have significantly reduced the amount of mortgages or loans they originate, or even stopped offering mortgages altogether. Americans want the opportunity to achieve the American dream: to own a home, buy a car, or start a business. I am proud the House passed the Home Mortgage Disclosure Adjustment Act to provide relief for these institutions to help make that happen.”