ICBA commended the Trump administration for issuing an executive order directing regulatory reforms that will help community banks promote housing affordability.
Directing Reg Relief: Noting that statutory and regulatory changes have increased the compliance costs of mortgage origination—contributing to a decline in bank participation in mortgage lending—the executive order directs federal regulators to consider regulatory relief for banks with less than $100 billion in assets.
Key Policies: Among its provisions, the executive order directs agencies to consider reforms to:
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Consumer Financial Protection Bureau ability-to-repay and qualified mortgage rules.
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Home Mortgage Disclosure Act data collection and disclosure standards.
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Capital regulations and Federal Home Loan Bank access.
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Supervisory expectations related to community bank construction lending.
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Appraisal regulations, guidance, and qualification requirements.
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Wet‑signature requirements for disclosures, applications, and closing documents.
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Supervisory expectations to support portfolio mortgage servicing as a core community banking function.
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Enforcement actions for violations of consumer financial laws.
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Duplicative or unnecessary licensing requirements for mortgage loan officers.
ICBA View: In a news release, ICBA President and CEO Rebeca Romero Rainey:
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Commended the Trump administration for advancing regulatory relief that will help community banks support housing affordability in local communities.
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Urged Congress to ensure pending housing legislation includes community bank regulatory relief provisions contained in the bipartisan House bill that passed 390-9 last month.