McConnell Bill to Help Rural Communities in Kentucky Passes Congress

Press Release

U.S. Senate Majority Leader Mitch McConnell praised passage of legislation he introduced to help rural communities harmed by Obama Administration policies that restrict access to rural lending opportunities. His legislation was also co-sponsored by Senators Dean Heller (R-NV), Shelley Moore Capito (R-WV), Mike Rounds (R-SD) and Deb Fischer (R-NE). Representative Andy Barr (R-KY-6) also introduced similar legislation in the House of Representatives, where the measure passed earlier this year by a vote of 401-1.

The Consumer Financial Protection Bureau (CFPB) -- created by the Dodd-Frank Wall Street Reform Act of 2010 -- permits certain rural lending practices in areas it deems "rural" or "underserved." However, as many rural communities have noted, the CFPB's original definition of rural unfairly excluded a significant number of demonstrably rural areas and neglected to provide rural communities with any input in the process. While the CFPB recently undertook efforts to revise its definition, it once again, neglected to allow input from rural communities themselves.

The Helping Expand Lending Practices in (HELP) Rural Communities Act would create a process to allow areas to petition the CFPB with important local information for reconsideration of their rural status. This would give rural counties across the country a voice when the CFPB has incorrectly deemed them "non-rural." The bill also takes important steps to address the challenges rural communities face by eliminating arbitrary mortgage origination requirements that will help ensure that rural communities bordering urban areas are still able to access credit services that are essential to rural small businesses and farmers.

"Washington's bureaucrats at the CFPB have continually struggled to understand rural America, labeling counties in Kentucky, such as Bath County, as "non-rural' and limiting rural lending practices that are helpful to farmers and small businesses," Senator McConnell said. "While I welcome the CFPB's recent efforts to improve the rural definition, I remain concerned that rural communities -- particularly those in Kentucky -- have been left without a voice. Our legislation seeks to correct this by putting into statute a process that allows areas that have been improperly designated as "non-rural' to petition the CFPB with additional local information to reconsider their status and to ensure no rural community is ever improperly designated. It will also help ensure that rural communities have the access to lending opportunities they need to grow their economy. I want to thank Senators Heller, Capito, Rounds and Fischer, as well as Representative Andy Barr, for their support of this important legislation."

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