Independent Bankers Association of Texas (IBAT) President and Chief Executive Officer Christopher L. Williston made the following statement upon the release of “The Protecting American Taxpayers and Homeowners (PATH) Act,” proposed housing finance reform legislation.
“The comprehensive draft legislation released by Chairman Jeb Hensarling boldly addresses a number of critical issues in a broken and unsustainable housing finance environment.
“Housing finance in various forms is a significant line of business for a large percentage of community banks across Texas and the nation, and this sector clearly contributes greatly to the overall economy. Legislative and regulatory remedies addressing the well-documented problems and abuses contributing to the ‘meltdown’ have, as is typical, gone too far and are creating issues with availability and affordability of mortgage and housing credit.
“Of particular concern to community banks are limitations and new requirements on mortgage lending that impact ‘in portfolio’ loans, i.e., loans kept as assets on a bank’s balance sheet for which the lender takes on the entirety of the risk. The exemption of these loans from a number of cumbersome, expensive and questionable regulatory requirements will allow housing credit to continue to be available to a number of consumers who otherwise may go unserved.
“Further, elimination and/or delay of implementation of a number of mortgage rules impacting all mortgage loans will provide the industry an opportunity to appropriately comply and develop acceptable business models to meet the borrowing needs of their customers.
“We are strongly supportive of these provisions and appreciate the efforts and commitment of the Chairman and Committee leadership and staff. We look forward to working with various stakeholders as this important process moves forward.”
For more information, please contact Steve Scurlock, IBAT Executive Vice President, at 512-275-2226 or firstname.lastname@example.org.