News From ICBA

73 Percent of Community Banks Say Regulations Inhibit Mortgage Lending

Approximately three-quarters of community bankers responding to an ICBA survey said new mortgage regulations are keeping them from making more residential mortgage loans. Among its other findings, the 2014 Community Bank Lending Survey also found that: significant percentages of community banks are no longer active in the residential mortgage market, are considering an exit or are exiting the market, 78 percent of respondents reported increasing the number of staff members dedicated to lending compliance over the past five years, and 66 percent of respondents said they do not provide loans that are outside the Consumer Financial Protection Bureau’s Qualified Mortgage definition or would only do so in special cases. ICBA said the results show the negative impact of excessive community bank regulation and the need for Congress to act on ICBA’s Plan for Prosperity for the 114th Congress. ICBA’s regulatory relief platform includes a variety of provisions to protect community banks from the CFPB’s mortgage rules and other regulatory burdens.