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Three-fourths of community banks say rules stifle mortgage lending

Three-fourths of community banks say rules stifle mortgage lending


WSBI U.S. member ICBA survey says new mortgage regulations prevent members making more home mortgages. 


​​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  • significant percentages of community banks are no longer active in the residential mortgage market, are considering an exit or are exiting the market,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 per cent of respondents reported increasing the number of staff members dedicated to lending compliance over the past five years, and
  • 66 per cent 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.

>> See this and more news in this week's issue of ICBA News Watch