WASHINGTON—The House this week voted 294-129 in favor of a bill that would provide mortgage-related regulatory relief.
The Community Institution Mortgage Relief Act of 2017 (HR 3971) was introduced in October by Rep. Claudia Tenney (R-NY).
The legislation now awaits action by the Senate.
“HR 3971 is a common-sense piece of regulatory reform legislation that makes changes to the Truth in Lending Act and the Real Estate Settlement Procedures Act,” said CUNA Chief Advocacy Officer Ryan Donovan.
Specifically, it would exempt:
- Mortgage loans made by financial institutions under $10 billion in assets from the Truth in Lending Act’s escrow requirements
- Mortgage servicers that service fewer than 20,000 mortgages annually from the requirements of Section 6 of the Real Estate Settlement Procedures Act
Ahead of the House Financial Services Committee's mark-up of the bill in October, NAFCU Vice President of Legislative Affairs Brad Thaler wrote in support of HR 3971, stating that "given their track record, small servicers such as credit unions should be incentivized to continue to service mortgage loans."