Andy Barr: “I thank Chairman Hensarling for his leadership, and especially a thank-you to the gentlewoman from New York (Ms.…”

“I thank Chairman Hensarling for his leadership, and especially a thank-you to the gentlewoman from New York (Ms. Tenney), my friend, for her outstanding leadership on this issue; and I rise in support of her legislation, the Community Institution Mortgage Relief Act. Homeownership is part of the American Dream; however, an ill- conceived rule promulgated by the Consumer Financial Protection Bureau has made it harder for Americans to purchase a home. In typical one-size-fits-all Washington bureaucrat fashion, the Bureau's rule places excessive escrow and mortgage servicing requirements on the backs of smaller community financial institutions and mortgage servicers. What the Bureau missed is that these lenders are rarely in subprime lending and frequently hold the loan in portfolio for the term of the loan. This means these lenders have a very strong incentive to ensure that taxes and insurance premiums are being paid because they are taking on 100 percent of the downside risk if the borrower fails to hold up their side of the deal, and, therefore, an escrow account isn't necessary. However, as a direct result of the rule, there is less consumer choice and more expense. That is because many community financial institutions are leaving the market or have been forced to charge home buyers more so they can afford to hire the extra professional staff they need to comply with this rule.…”