U.S. Rep. Randy Hultgren (D-Ill.) has cosponsored the Portfolio Lending and Mortgage Access Act.
H.R. 1210 offers relief to mortgage lenders such as community banks and credit unions from unnecessary regulations that increase costs and reduce the availability of consumer home mortgages.
“Homeownership advances the American dream and encourages responsible citizenship, encouraging deep community involvement," Hultgren said. "We should encourage this key investment for the average American as a primary way that they build their net worth."
Specifically, the Portfolio Lending and Mortgage Access Act provides that residential mortgages satisfy Dodd-Frank’s ability to repay requirement if the original creditor holds the loan; treats the loans as a qualified mortgage for the purpose of other relevant regulations; and excludes loans that are later securitized and moved off portfolio from this protection.
"Unfortunately, Dodd-Frank regulations restrict home loans by forcing banks, especially community banks and credit unions, into a regulatory straightjacket," Hultgren said. "Dodd-Frank regulations micromanage what mortgages lenders can safely offer, undermining the innovative ways that lenders tailor make loans to help the particular needs of their customers. The Portfolio Lending and Mortgage Access Act sensibly reduces these regulations without undermining consumer protection."
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