Washington, D.C. – Last week, Congressman Bob Latta (R-Bowling Green) voted in support of legislation to protect American consumers and homeowners from costly, burdensome regulations imposed by the Consumer Financial Protection Bureau (CFPB). The bills, H.R. 1210 and H.R. 1737, passed the U.S. House of Representatives with bipartisan support.
The CFPB’s current mortgage rules will make it more difficult for credit-worthy Americans to buy a home. H.R. 1210, the Portfolio Lending and Mortgage Access Act, relaxes the CFPB’s one-size-fits-all mortgage rule to better allow credit-worthy Americans the ability to buy a home they can afford to keep.
“Under the CFPB’s current rule, one in five Americans who borrowed in order to buy a home just five years ago will not be able to meet these burdensome requirements. This is unacceptable,” said Rep. Latta. “Homeownership is part of the American Dream. Community banks and local credit unions understand the needs of their customers and communities far better than unelected bureaucrats in Washington. These local banks should have flexibility to serve their customers who want to buy a home as long as they agree to retain the risk of that loan.”
H.R. 1737, the Reforming CFPB Indirect Auto Financing Guidance Act, rescinds the CFPB’s flawed guidance relating to indirect auto lending. The CFPB has created enormous uncertainty in the indirect auto lending market by issuing this guidance without notice and comment, and by taking enforcement and supervisory actions based upon flawed statistical models. H.R. 1737 nullifies this guidance, and creates requirements that increase the transparency needed for future guidance on this matter to be issued.
“This legislation protects consumers, especially those with low and moderate incomes, by ensuring they are able to receive the best financing available to purchase a car or truck. Consumers – not government bureaucrats – should decide what products and services they want and determine works best for their needs. This bill safeguards the right of Americans to negotiate, seek a better deal, and choose the loan that’s best for them when purchasing a vehicle.”