President Trump has issued an executive order to promote access to mortgage credit.

Commenting on the issuance of the order, NCBA president & CEO Peter Gwaltney stated, “Following the passage and implementation of the Dodd-Frank Act, banks of all sizes in North Carolina and across the nation exited the mortgage business, citing increased financial and regulatory risk, as well as higher compliance costs. As a result, banks now originate only about 25% of all mortgage loans. My hope is that President Trump’s Executive Order will help reverse this trend by creating an economic and regulatory environment in which banks can profitably offer affordable mortgage products and services in their communities.”

The order:

• Directs the CFPB to change how it enforces TILA and regulates mortgage lending and servicing.
• Instructs the CFPB to reduce burdensome rules regarding banks’ compliance with ability-to-pay and qualified mortgage underwriting requirements, and to exempt small-mortgage loans from caps on QM points and fees or to modify the caps to support affordability.
• Recommends that the CFPB consider raising the asset threshold for exemption from HMDA data collection and reporting requirements for smaller banks.
• Directs the CFPB to work with other banking agencies to exclude one-to four-family residential development and construction lending from commercial real estate concentration guidance, to ensure supervisory expectations support responsible construction lending by community banks, and to eliminate duplicative and unnecessary licensing requirements.
• Tasks federal agencies with revising their supervisory processes to ensure examiners evaluate mortgage lending based on the effectiveness of the lender’s policies regarding a consumer’s ability to repay and prudent underwriting, rather than focus on process and technical compliance, and it calls for digital mortgage modernization by eliminating unnecessary wet?signature requirements for disclosures, applications and closing documents.

Author: sdbrownlow

Student of Design