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.
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.
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
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.
Summary by Eric Revell(Photo Credit: SARINYAPPINGAM / iStock)
Home Mortgage Disclosure Adjustment Act
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.