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Friday, August 9, 2013

QM Update: CLEAR Relief Act Seeks to Increase Community Bank Lending

Senate Banking Committee members Senators Jerry Moran (R-KS), Jon Tester (D-MT) and Mark Kirk (R-IL) have introduced the Community Lending Enhancement and Regulatory (CLEAR) Relief Act, S. 1349. Since being introduced it has gained two democratic co-sponsors, Kay Hagan (NC) and Mary Landrieu (LA).

This legislation would provide regulatory relief to community banks and would:
  • Provide "qualified mortgage" (QM) status under the CFPB's ability-to-repay rules for any mortgage originated and held in portfolio for at least three years by a lender with less than $10 billion in assets.
  • Exempt from any escrow requirements any first lien mortgage held by a lender with less than $10 billion in assets.
  • Require the Federal Reserve to revise the Small Bank Holding Company Policy Statement by increasing the qualifying asset threshold from $500 million to $5 billion.
  • Exempt community banks with assets less than $1 billion from the Sarbanes-Oxley 404(b) internal-controls assessment mandate.
Rep. Blaine Luetkemeyer (R-MO3) previously introduced the House companion bill, H.R. 1750.

Learn more about S. 1349. and the House Companion Bill, H.R. 1750.

Moran's Press Release.

ABIA has a established a QM Task Force to address ABIA-member concerns about the QM rule. Please contact Renee Galbraith to participate in ABIA’s Qualified Mortgage Task Force.