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ICBA Statement on Proposed Credit Risk-Retention Rule

Washington, D.C. (August 28, 2013)—Camden R. Fine, president and CEO of the Independent Community Bankers of America® (ICBA), today released this statement following the FDIC’s approval of a notice of proposed rulemaking to implement credit risk-retention standards on mortgage loans.

“Our nation’s community banks have always been and continue to be common-sense mortgage lenders that use sound underwriting standards to meet the needs of their customers and communities. ICBA commends the regulatory agencies for developing a less restrictive credit risk-retention proposal that would minimize the negative impact of new regulations on our housing recovery.

“ICBA is pleased that the proposed rule would include ‘qualified mortgage’ (QM) loans as defined under the ability to repay rules issued by the CFPB and loans backed by Fannie Mae and Freddie Mac in the ‘qualified residential mortgage’ (QRM) definition. The vast majority of residential mortgages originated and sold by community banks are sold to Fannie Mae and Freddie Mac, so today’s action would allow many community banks to continue to provide their customers with long-term mortgages. The proposed approach would establish a clear set of rules with fewer impediments to credit availability than the original proposal, which included a 20 percent down payment requirement.

“ICBA will continue to review the full details of today’s proposed rule and work with the FDIC, and other regulators as this rulemaking process continues, to ensure community banks can continue to serve their local customers and communities.”

About ICBA
The Independent Community Bankers of America®, the nation’s voice for nearly 7,000 community banks of all sizes and charter types, is dedicated exclusively to representing the interests of the community banking industry and its membership through effective advocacy, best-in-class education and high-quality products and services. For more information, visit www.icba.org.

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