Dems’ Alternate Reg Relief Bill Would Confer QM Status on Portfolio Loans Only for Small Lenders
May 21, 2015
The noise over regulatory relief legislation is getting louder. Over the past week, Republicans in the Senate issued a clarification of sorts about their draft legislation, Democrats came up with a narrower alternative and the industry weighed in as the Senate Banking, Housing and Urban Affairs Committee prepared for a markup scheduled for late this week. A noteworthy provision in the Democrats’ proposal would extend qualified-mortgage status for loans originated and held in portfolio – but only if the depository institution has less than $10 billion in assets. The GOP bill would extend this safe harbor to all banks, thrifts and credit unions. The Democratic proposal would bar...