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house Bill H.R. 2954

Should Small Banks Originating Less Than 500 Mortgages Per Year be Exempt From Statistical Reporting Rules?

Argument in favor

The recordkeeping and reporting requirements for small banks with a relatively small number of mortgages or lines of credit on their books are too onerous, this would help such institutions continue providing access to home loans.

DrRichSwier's Opinion
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01/18/2018
Get government bureaucracies out of the way of small businesses.
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David's Opinion
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01/19/2018
Small community banks are built off of relationship banking and are at the center of any local economy. Community banks take in local deposits and reinvest those deposits in the forms of loans within the communities they serve. Often at times you have employees of a small bank wearing multiple hats covering a number of functions. As burdens increase from regulatory compliance, small institutions either have to exit a product line or exit the market altogether. As the primary lenders to small business, anything to reduce their burden, the higher chance for the survival of the unique community banking model.
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Brian's Opinion
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01/19/2018
The recordkeeping and reporting requirements for small banks with a relatively small number of mortgages or lines of credit on their books are too onerous, this would help such institutions continue providing access to home loans.
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Argument opposed

The Home Mortgage Disclosure Act’s recordkeeping and reporting requirements are in place for a reason — to better understand lending patterns and prevent discriminatory lending. No firm, however small, should be exempt from them.

Kenneth's Opinion
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01/15/2018
If reporting transactions becomes too much for your financial institution you should get out of the banking business. If an annual report is too hard how many other requirements will you dodge?
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RadicalModerate's Opinion
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01/14/2018
The fraudulent but legal practice of FRACTIONAL RESERVE LENDING, gives any bank, large or small, an unfair advantage over other financial schemes. So no, they don’t need exemption from any regulations, ever.
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IllWill's Opinion
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01/14/2018
There is literally no good reasons to support this legislation. It doesn’t matter whether you’re a large or small financial institution. All the mortgages and lines of credit that you issue should be reported so that we know exactly what’s going in the mortgage market. These statistics are needed for basic consumer protection and to understand the health of the housing market. This is just another attempt to deregulate the financial sector and we’ve seen the consequences of this already.
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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 Passed January 19th, 2018
    Roll Call Vote 243 Yea / 184 Nay
      house Committees
      Committee on Financial Services
    IntroducedJune 20th, 2017

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What is House Bill H.R. 2954?

This bill would exempt financial institutions that originate less than 500 closed-end mortgage loans or less than 500 open-end lines of credit annually from recordkeeping and disclosure requirements under the Home Mortgage Disclosure Act (HMDA). Currently, institutions are required to periodically report to financial regulators about the number and dollar value of closed-end mortgages and open-end lines of credit originated or purchased each year.

Impact

Financial institutions that originate less than 500 closed-end mortgages or purchase less than 500 open-end lines of credit annually; their current and prospective customers; and financial regulators.

Cost of House Bill H.R. 2954

The CBO estimates that enacting this bill would cost $1 million over the 2018-2027 period.

More Information

In-Depth: Sponsoring Rep. Jeb Hensarling (R-TX) introduced this bill to provide “much needed regulatory relief for smaller institutions” because “the cost of compliance for HMDA is so great that many small banks are considering whether to abandon the mortgage business all-together.”

House Democrats expressed opposition to this bill, saying it “would harm efforts to identify and stop discriminatory lending and violations of fair housing laws, as well as the ability to understand lending patterns and trends.”

This legislation passed the House Financial Services Committee on a vote of 36-24 and has the support of seven cosponsors in the House, all of whom are Republicans.


Media:

Summary by Eric Revell

(Photo Credit: SARINYAPPINGAM / iStock)

AKA

Home Mortgage Disclosure Adjustment Act

Official Title

To amend the Home Mortgage Disclosure Act of 1975 to specify which depository institutions are subject to the maintenance of records and disclosure requirements of such Act, and for other purposes.

    Get government bureaucracies out of the way of small businesses.
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    If reporting transactions becomes too much for your financial institution you should get out of the banking business. If an annual report is too hard how many other requirements will you dodge?
    Like (88)
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    The fraudulent but legal practice of FRACTIONAL RESERVE LENDING, gives any bank, large or small, an unfair advantage over other financial schemes. So no, they don’t need exemption from any regulations, ever.
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    All mortgage holders should report
    Like (8)
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    There is literally no good reasons to support this legislation. It doesn’t matter whether you’re a large or small financial institution. All the mortgages and lines of credit that you issue should be reported so that we know exactly what’s going in the mortgage market. These statistics are needed for basic consumer protection and to understand the health of the housing market. This is just another attempt to deregulate the financial sector and we’ve seen the consequences of this already.
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    The 2008 mortgage crisis started small - sales of small groups of pooled “securitized loans”. All the banks were in denial of the risks associated with bundling high and low risk loans. There is no oversight, and this administration wants to REDUCE the oversight? Outrageous! NO,
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    The recordkeeping and reporting requirements for small banks with a relatively small number of mortgages or lines of credit on their books are too onerous, this would help such institutions continue providing access to home loans.
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    EXACTLY HOW MUCH (in real dollars) does compliance with the current HMDA cost an individual institution per mortgage? Per Year? Weighed against the amount of interest collected on any of these loans? What DATA-BASED report confirms the assumptions in this bill? Where can an average tax-paying voter find such DATA-BASED report for review? Until those questions are answered, this veiled attempt to screw the consumer and again help business MUST BE DEFEATED.
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    Small community banks are built off of relationship banking and are at the center of any local economy. Community banks take in local deposits and reinvest those deposits in the forms of loans within the communities they serve. Often at times you have employees of a small bank wearing multiple hats covering a number of functions. As burdens increase from regulatory compliance, small institutions either have to exit a product line or exit the market altogether. As the primary lenders to small business, anything to reduce their burden, the higher chance for the survival of the unique community banking model.
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    I’d support the bill if it required ALL financial institutions would be required to REPORT ALL their financial transactional activities. Non-Reporting of their financial activities could possibly lead to irregular transactions occurring. Just keep the folks honest and I’d be happy 😊.
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    Small banks did not cause the financial crisis. In fact, if there were more small banks and less consolidation, it may not have happened. Small banks cannot handle the reporting requirements that if ones can. Still, they should be regulated to prevent unethical practices. What about less frequent or onerous reporting for small banks?
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    The recordkeeping and reporting requirements for small banks with a relatively small number of mortgages or lines of credit on their books are too onerous, this would help such institutions continue providing access to home loans.
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    Information is key for forming policies.
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    Reduction of oversight in financial matters produces bad results. Look at the savings and loan mess.
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    Good Records keep us Good.
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    No, small banks were involved in the real estate and banking recession.
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    I have to vote Nay on this bill. Access to the data is to important and with computer technology reporting really should be a simple task. As a technology expert who handled all of the tech requirements for a school district and now an independent networking specialist, I know what computer programs can do for reporting purposes. All of the data is already stored so it is relatively simple to access that data for reporting purposes. Most school districts already have software available for much more onerous reporting requirements. It’s a small step for banks and I would bet the software already exists. If not I’ll write it because there is obviously a need. It would be a great business opportunity and isn’t that what the Republican mantra is all about providing a market for entrepreneurs.
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    Dodd-Frank is KILLING small banks and small banks are the lifeblood of small businesses.
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    This rule should stand for everyone and every Bank that wants to give out home mortgages and any type of other loan. They need to be held accountable for what they are doing so as not to discriminate or make a profit on the American people who need these loans.
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    This is just a backwards way to cut consumer protections to help the rich get richer.
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