Tag Archives: Community Banks Fear New Rule Will Constrict Lending

The Consumer Financial Protection Bureau (CFPB) proposed a new rule in January that requires lenders to carefully scrutinize borrowers’ ability to repay their mortgages. The ability-to-repay rule, which first was greeted with positive reaction, now has some lawmakers and community banks concerned that it may cause lending to tighten even more at smaller banks, The Wall Street Journal reports. At a House hearing on Tuesday, lawmakers asked CFPB officials to tweak the new rule to make sure that it doesn’t have a negative impact on smaller banks. “One concern expressed […]