Small financial institutions are in favor of the CFPB expanding its small creditor exemptions in its final rules having to do with establishing a borrower’s ability to repay and escrow requirements for higher-priced mortgage loans. The Independent Community Bankers of America and a coalition of 45 state and regional banking associations urged the bureau to expand the exceptions for small creditors to ensure community banks can continue to meet their communities’ mortgage needs. In a joint letter, the organizations called on the CFPB to allow community bank loans held in portfolio for the life of the loan to automatically receive qualified mortgage safe harbor status and an exemption from the escrow requirements for higher-priced mortgage loans. The trade groups noted ...