Helping Expanding Lending Practices in Rural Communities Act

Floor Speech

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Mrs. CAPITO. Madam Speaker, I yield myself such time as I may consume.

Madam Speaker, the legislation before us this afternoon makes an important improvement to the Consumer Financial Protection Bureau's qualified mortgage rule that went into effect this past January. Under the Bureau's proposed rule, a community bank or credit union operating in a rural community would be afforded some flexibility to underwrite mortgages that otherwise would not be deemed a qualified mortgage. These products, sometimes referred to as balloon loans, are a critical source of mortgage credit in rural and agricultural communities. Although the Bureau has recognized the importance of this type of credit in rural communities, the definition that they used for a rural community will result in fewer mortgage options for consumers in rural communities.

The Bureau relied on the U.S. Department of Agriculture's Urban Influence Codes to define a rural community. Under this definition, half of the counties in the State of West Virginia are considered urban. Well, I think those of us who have driven through West Virginia would find that hard to believe. According to the Bureau, Clay County, West Virginia, which has a population density of 30 people per square mile, is urban. Similarly, neighboring Calhoun County, which has a population density of 27 people per square mile, is also deemed urban by the Bureau. These examples demonstrate a complete lack of understanding of rural America.

Mr. Barr's legislation sets up a process by which a community can petition the Bureau to be reclassified as rural. This commonsense approach strikes an appropriate balance that will allow consumers in rural areas to continue to have access to mortgage credit. I commend Mr. Barr of Kentucky for authoring this legislation and deftly navigating it through the House Financial Services Committee, where it passed 55-1.

I urge my colleagues to support this critical piece of legislation. Obviously, it will have a great impact on rural America, which is where I live and where many of us do, too. I reserve the balance of my time.

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Mrs. CAPITO. Madam Speaker, I yield myself the balance of my time.

I echo the comments of the ranking member, and I thank her for her help on this bill. I thank Mr. Hinojosa and Mr. Barr for their good, hard work.

As I said earlier in my opening statement, rural America does have a different way of trying to access credit and to make sure that homeownership becomes the reality that many of us hope for our families. I would like to congratulate the sponsors, and I urge passage of the bill.

I yield back the balance of my time.

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