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house Bill H.R. 2673

Home Mortgages: Safe Harbor for Loans Held in Portfolio

Argument in favor

Would improve access to home financing for low-income borrowers by looking at tangible and intangibles, in regard to the borrower’s finances.

Argument opposed

Opens the door for smaller, community banks to offer predatory loans similar to those that derailed the economy in 2007.

bill Progress

  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
  • The house has not voted
      house Committees
      Committee on Financial Services
    IntroducedJuly 11th, 2013

What is House Bill H.R. 2673?

This bill deals with residential mortgage loans held in a portfolio. It would change the Truth in Lending Act to state that any residential loans held in portfolio by the loan originator automatically attain the qualified mortgage (QM) safe harbor designation.

According to the Mortgage Almanac,

a portfolio lender is a bank or other lending institution that makes mortgage loans with the intention of holding the loans in their investment portfolios. Portfolio lenders can often offer consumers greater flexibility in the loan granting process, as well as down the road, than lenders who make mortgage loans with the intention of selling them - either immediately or at some time during the term.
Today, portfolio lenders are more likely to be smaller community banks-often privately held-that have more discretion in the way they do business than larger, stockholder-driven institutions. These banks can make lending decisions based on the intangibles as well as the tangibles of a transaction. For example, a long term banking relationship with a customer might influence a positive loan decision, even in a situation where there had been a period of poor credit.


The bill impacts those seeking a mortgage from lenders who hold such mortgages in their lending portfolio.

Cost of House Bill H.R. 2673

A CBO cost is currently unavailable.


Portfolio Lending and Mortgage Access Act

Official Title

To amend the Truth in Lending Act to provide that residential mortgage loans held on portfolio qualify as qualified mortgages for purposes of the presumption of the ability to repay requirements under such Act.

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