Texas Bankers and Mortgage Bankers applaud final house passage of landmark housing legislation

AUSTIN, Texas - The Texas Mortgage Bankers Association and Texas Bankers Association today applauded the U.S. House of Representatives for final passage of the 21st Century ROAD to Housing Act, clearing the bipartisan housing package for consideration by President Donald J. Trump.

The House action follows the Senate's overwhelming 85-5 approval of the legislation Monday. The bipartisan, bicameral package brings together more than 45 housing provisions and nine community banking measures intended to expand housing supply, lower costs, modernize federal housing programs and improve access to mortgage credit.

CEO of the Texas Mortgage Bankers Association, Scott Norman, said, "Housing is a national priority, and affordability begins with supply. We congratulate Chairman French Hill for his assiduous work to pass this important legislation. This package represents meaningful progress toward building more homes and lowering costs for American families. As Texas continues to lead the nation in job creation and population growth, these reforms are especially vital for our state. The legislation will expand housing opportunities, reduce costs, and help more families achieve and sustain homeownership. It also modernizes federal housing programs to broaden access to affordable mortgage credit.

We especially want to thank Chairman Tim Scott, Ranking Member Maxine Waters, and Ranking Member Elizabeth Warren for their efforts to advance this bill and place it on President Donald J. Trump's desk. Bipartisan collaboration on practical solutions is essential to addressing America's housing challenges."

TBA President and CEO, Chris Furlow, said, "Housing is one of the most important economic issues facing our nation, and we are grateful to Chairman Hill for his determined efforts to strike a meaningful agreement that ensures community banks can continue to play a vital role in helping Texans and all Americans afford a home. Chairman Hill's ability to achieve a bipartisan, bicameral agreement in a contentious election year is indicative of a level of leadership increasingly rare in Washington. We are grateful for the bipartisan work of Chairman Scott, Ranking Member Warren, and Ranking Member Waters with Chairman Hill to get this important legislation over the finish line and onto President Trump's desk."

The legislation addresses housing affordability through reforms intended to accelerate construction, reduce unnecessary regulatory barriers and strengthen financing options. It includes measures supporting small-dollar mortgages, manufactured and modular housing, rural housing, home repairs, local planning and development, appraisal modernization and the HOME Investment Partnerships Program. The package also limits certain purchases of single-family homes by large institutional investors.

Title IX of the legislation, Strengthening Community Banks' Role in Housing, recognizes the essential role local financial institutions play in mortgage lending, housing construction and community development. Its provisions update the regulatory treatment of custodial and reciprocal deposits, raise the asset threshold for qualifying for an 18-month examination cycle from $3 billion to $6 billion and strengthen transparency surrounding the use of systemic-risk authority.

The title also directs regulators to simplify the application process for new banks, establishes a capital phase-in pilot program for de novo institutions and requires a study of the regulatory and economic barriers facing rural depository institutions. Together, these reforms will help preserve local sources of credit and strengthen community banks' ability to finance housing and economic growth.

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About the Texas Mortgage Bankers Association 

Since 1917, members of the Texas mortgage banking community have turned to Texas Mortgage Bankers Association for its leadership in industry education, legislative initiatives, and peer interaction. Today, TMBA's purpose is still to serve the mutual interests of its members to preserve, enhance and advance the mortgage banking and real estate finance business in the State of Texas.

About the Texas Bankers Association

Founded in 1885, the Texas Bankers Association is the oldest and largest state-based banking association in the United States. TBA advocates for nearly 400 member banks and trust companies in Austin and Washington, trains more than 20,000 bankers annually, provides nationally recognized community bank services, and invests in Texas communities through financial literacy, scholarships and charitable activities.