Hultgren supports Illinois’ community banks with legislation
Washington, D.C.—U.S. Representative Randy Hultgren (IL-14) has co-sponsored several pieces of legislation that would ease Dodd-Frank’s regulatory burden on community banks, a lifeline of credit for Illinois farmers and rural communities.
Hultgren is a member of the Financial Services Subcommittee on Capital Markets and Government-Sponsored Enterprises.
“Community banks and credit unions are an essential lifeline to credit for small banks, farmers, and rural communities,” Hultgren said. “Too often, Washington bureaucrats force these institutions, which did not cause the recent financial crisis, into a one-size-fits all model of lending. We must change that, and promote a relationship lending model, where community banks extend credit not solely through the lens of credit scores and history, but making decisions informed by the knowledge they have from working on the ground in their communities.”
Hultgren sponsored the following bills:
• Portfolio Lending and Mortgage Access Act (H.R. 2673) amends the Truth in Lending Act to define as a “qualified mortgage”—a category which exempts financial institutions from otherwise complying with costly regulations—a residential mortgage loan made by a creditor so long as the loan appears on the balance sheet of such creditor.
• Mortgage Choice Act of 2013 (H.R. 3211) provides regulatory relief to community banks and credit unions by modifying the definition of “points and fees” for the purposes of determining defining a qualified mortgage.
• Community Institution Mortgage Relief Act of 2014 (H.R. 4521) provides regulatory relief to community banks and credit unions by exempting banks with assets below $10 billion from escrow requirements for loans held in portfolio, and amending the Real Estate Settlement Procedures Act to increase the “small servicer” exception threshold to 20,000 annual loans (up from 5,000).
• Financial Institutions Examination Fairness and Reform Act (H.R. 1553) improves the consistency and clarity of the federal examination process for financial institutions, reducing compliance costs for community banks.
• Community Lending Enhancement and Regulatory Relief Act of 2013, or CLEAR Relief Act (H.R. 1750), provides various pieces of targeted regulatory relief for community banks and credit unions.
• Municipal Advisor Oversight Improvement Act of 2013 (H.R. 797) provides targeted regulatory relief to municipal advisors that advise state and local governments on financial matters.