House Passes ABA-Advocated Portfolio Lending Bill

By a bipartisan 255-174 vote, the House today passed H.R. 1210, which would designate all mortgage loans that institutions originate and hold in portfolio as Qualified Mortgages and thus subject to the safe harbor provisions of the Ability-to-Repay Rule. The bill is a signature part of ABA’s Agenda for America’s Hometown Banks.

“It’s clear that new regulatory requirements have restrained mortgage lending, and have made it particularly difficult for some creditworthy borrowers to obtain a home loan,” said ABA EVP James Ballentine. “This legislation is a common-sense approach that will help borrowers gain access to some of the lowest risk mortgage products offered by banks. Loans held in portfolio are well underwritten and conservative by their very nature — banks hold only the safest loans in portfolio. There is no need to create additional barriers for creditworthy borrowers for loans held in a bank’s portfolio.”