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Congressman Tom Emmer

Representing the 6th District of Minnesota

House Passes Emmer Legislation to Bring Regulatory Relief to Community Banks and Credit Unions

January 18, 2018
Press Release

The Home Mortgage Disclosure Adjustment Act will bring relief to community financial institutions and small lenders across the country.

Washington, D.C. – Today the House passed Congressman Tom Emmer’s (MN-06) Home Mortgage Disclosure Adjustment Act (H.R. 2954) to bring regulatory relief to small community banks and credit unions across the country. Specifically, the legislation will eliminate burdensome compliance regulations imposed on small financial institutions by the Consumer Financial Protection Bureau (CFPB), who in 2015 issued a rule requiring lenders to report more than double the data currently required. The new rule went into effect January 1, 2018.

“Since the inception of Dodd-Frank, our local small banks and credit unions have been forced to, quite literally, pay the price for a crisis they didn’t create,” said Congressman Emmer, who first introduced the Home Mortgage Disclosure Adjustment Act in 2015.

“I consistently hear from Minnesota’s small community banks and credit unions who are struggling to keep up with burdensome compliance costs. Some have significantly reduced the amount of mortgages or loans they originate, or even stopped offering mortgages altogether. Americans want the opportunity to achieve the American dream - to own a home, buy a car, or start a business. I am proud the House passed the Home Mortgage Disclosure Adjustment Act to provide relief for these institutions to help make that happen.”

The original 1975 Home Mortgage Disclosure Act was enacted to eliminate discriminatory lending practices. Over the years, however, this law has become more and more expansive. Emmer’s Home Mortgage Disclosure Adjustment Act will provide needed relief, while ensuring that the original intent of the 1975 law is kept intact.

H.R. 2954 will exempt from the CFPB's reporting and disclosure requirements institutions that have originated in each of the two preceding calendar years:

  • fewer than 500 closed-end mortgage loans, and
  • fewer than 500 open-end lines of credit.

Read the full text of the Home Mortgage Disclosure Adjustment Act here.

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