ICBA responded to a Consumer Financial Protection Bureau request for information on encouraging residential mortgage loan refinances by calling on the bureau to reduce unnecessary compliance burdens for community banks.
Background: The CFPB requested input on potential barriers that prevent or discourage qualified borrowers from accessing refinance products, particularly in low- and moderate-income and rural areas.
ICBA Recommendations: Noting that community banks work with their customers to determine appropriate loan products given their unique needs and financial circumstances, ICBA encouraged the CFPB to:
Coordinate with other regulators to reduce unnecessary compliance burdens and complexity for community banks.
Carefully consider whether and how the CFPB should offer targeted and streamlined refinance programs and products.
Provide more opportunities and tools to enrich borrower education.