Portfolio Lending and Mortgage Access Act

Floor Speech

BREAK IN TRANSCRIPT

Mr. HILL. I thank the chairman.

Mr. Speaker, I rise in support of H.R. 1210, the Portfolio Lending and Mortgage Access bill, designed by my good friend from Kentucky.

We have seen in Arkansas loan approval rates decline significantly since the QM rules were put in place. One bank noted a 40 percent decline in eligible borrowers.

Today, I just want to tell a story. A community banker in my district called this week and said that he has a customer that from time to time just needs catch-up money, money to catch up on bills, medical expenses, or to help out her kids. But her credit score is in the low range of acceptable, and therefore, she doesn't qualify for unsecured credit, and therefore, she uses the equity in her house. She has been doing it for years and paid back those lines over and over again with no problems.

Now she has to go through the ability-to-repay process, which is long and arduous and, unfortunately for her, leading to mistrust between a long-term client and her hometown bank.

As a former chairman, CEO, and president of a community bank in Arkansas, I can assure you that members of our boards of directors across this country scrutinize all portfolio loans, both those that are sold and those kept on the books. But there is no better incentive than to have good underwriting and to ensure the customer has the ability to repay the loan held on the balance sheet of one of our financial institutions.

That is what we are talking about here today.

Community institutions know best how to serve their communities and their clients--not Washington.

Mr. Speaker, I urge my colleagues to support this commonsense bill.

BREAK IN TRANSCRIPT

Source