A bill introduced by Rep. Andy Barr (R-Ky.) would help credit unions continue to provide mortgage credit to members where one-size-fits-all regulation otherwise impedes it, CUNA wrote this week. Barr’s bill, the Portfolio Lending and Mortgage Access Act (H.R. 2226), would treat residential mortgages held in portfolio by the original creditor as qualified mortgages (QMs).
“Treating loans held on balance sheets in this manner is especially appropriate for credit unions not only because they retain all of the risk involved with these mortgages and are subject to significant safety and soundness supervision from their prudential regulator, but also because they frequently have unique knowledge of their members’ financial circumstances,” wrote CUNA President/CEO Jim Nussle.
“Your legislation will help credit unions, many of which are primarily portfolio lenders, continue to provide mortgage credit to their members, even in circumstances where rigid adherence to the one-size-fits-all QM rule would deny a member the opportunity to own a home.”
A provision containing the language of Barr’s bill is part of the CUNA-supported Community Lending Enhancement and Relief Act (H.R. 2133), which was introduced by Rep. Blaine Luetkemeyer (R-Mo.) last month.
A similar provision is also part of Rep. Jeb Hensarling’s (R-Texas) Financial CHOICE Act, which was passed by the House Financial Services Committee Thursday.