ICBA to CFPB: Promote mortgage refinancing by reducing reg burdens

ICBA responded to a Consumer Financial Protection Bureau request for information on encouraging residential mortgage loan refinances by calling on the bureau to reduce unnecessary compliance burdens for community banks.

Background: The CFPB requested input on potential barriers that prevent or discourage qualified borrowers from accessing refinance products, particularly in low- and moderate-income and rural areas.

ICBA Recommendations: Noting that community banks work with their customers to determine appropriate loan products given their unique needs and financial circumstances, ICBA encouraged the CFPB to:

• Coordinate with other regulators to reduce unnecessary compliance burdens and complexity for community banks.

• Carefully consider whether and how the CFPB should offer targeted and streamlined refinance programs and products.

• Provide more opportunities and tools to enrich borrower education.