Logo: Independent Community Bankers of America - ICBA The Nation's Voice for Community Banks (R)

Graphic: Arrow Forgot password?
Graphic: Arrow Request Login
Contact ICBA Site Map Search ICBA
ArrowICBA Home
ArrowAbout ICBA
ArrowAbout Community Banking
ArrowConsumer Education & Resources
ArrowIndustry Resources
ArrowMarketing Resources
ArrowMembership/Nat. Solutions Group
ArrowPress Room
ArrowSocial Media
ArrowMain Street Market®

Members Only = Access Restricted
Last update: 10/21/14

ICBA News Release Header


ICBA to Congress: Focus Mortgage Reforms On Market’s Problem Areas

Washington, D.C. (April 23, 2009)—The Independent Community Bankers of America (ICBA) today urged Congress to focus mortgage reforms on companies that engaged in imprudent and abusive lending practices, such as less-regulated mortgage brokers and non-bank lenders, and to avoid creating a mortgage finance system that could make it more difficult for credit-worthy consumers to obtain credit if it is too rigid to respond to changing interest rate and lending environments, and customer needs.

“Our nation’s more than 8,000 community banks are the bright spot in the struggling mortgage market because they made smart loans and did not engage in the risky practices that contributed to the current crisis,” said R. Michael Menzies, ICBA chairman and president and CEO of Easton Bank and Trust in Easton, Md., in his testimony to the House Financial Services Committee. “ICBA supports sound mortgage reforms to prevent abusive mortgages and help preserve our local economies and urges Congress not to diminish the ability of community banks to serve Main Street America.”

Menzies warned that new lending standards proposed under the Mortgage Reform and Anti-Predatory Lending Act of 2009 (H.R. 1728) could produce excessive rigidity in the mortgage market that could affect access to credit and keep community banks from meeting customers’ needs. Menzies urged that a broader range of safe mortgage products, not just certain 30-year fixed rate loans, qualify as “safe harbor” loans that meet the standards laid out in the bill.

Menzies also said ICBA supports provisions that would prevent lenders from steering consumers to subprime products when they qualify for prime loans, but urged Congress to focus on non-bank mortgage originators, the sector where regulation is needed most.

ICBA looks forward to working with Congress to create a regulatory regime that prevents abusive mortgages, while providing the mortgage finance industry flexibility to meet consumers’ needs.

To read ICBA’s testimony, visit www.icba.org.

ArrowsPrintable version

Button: Share

All contents copyright 2014 Independent Community Bankers of America. All rights reserved.
Privacy Statement | Legal Notice