Barr's Portfolio Lending and Mortgage Access Act Passed by the House of Representatives

Bipartisan legislation would expand home ownership, encourage responsible mortgage lending, and prevent future taxpayer bailouts.

March 6, 2018

H.R. 2226, the Portfolio Lending and Mortgage Access Act, introduced by Congressman Andy Barr (KY-06) was passed today by the full House of Representatives.  The legislation would extend the “Qualified Mortgage” legal safe harbor to small creditors, banks and credit unions, with total consolidated assets of $10 billion or less who originate and hold residential mortgage loans in portfolio, rather than selling or securitizing them, allowing those lenders to satisfy Dodd Frank’s ability-to-repay rule. 

The bill promotes affordable home financing from community banks and credit unions and discourages the risky practices which led to the 2008 financial crisis and the resulting taxpayer bailouts of Fannie Mae, Freddie Mac, and large systemically important financial institutions. It also has been endorsed by the Kentucky Bankers Association, the Kentucky Credit Union League, the American Bankers Association, the Independent Community Bankers, the Credit Union National Association, the National Association of Federal Credit Unions, the National Association of Homebuilders, and the U.S. Chamber of Commerce.

“Today, Republicans and Democrats in the House came together to pass this commonsense, bipartisan legislation that will reduce unnecessary regulations on community banks and credit unions, prevent taxpayer bailouts, and expand the American dream of homeownership,” said Congressman Barr.  “After five years of work on this legislation, I am optimistic that the strong bipartisan support for this bill, including unanimous support in the Financial Services Committee, will propel this needed reform toward passage in the Senate and earn the President’s signature.”