Rep. Shelley Moore Capito, R-W.Va., joined Rep. Keith Rothfus, R-Pa., Tuesday for a roundtable discussion with community banking officials on the Consumer Financial Protection Bureau's qualified mortgage rule.
Capito and Rothfus met with representatives from the city of Wheeling, WesBanco, the Federal Home Loan Bank of Pittsburgh and a host of smaller banks and credit unions during the forum in Pittsburgh.
Earlier this year, the bureau issued six new rules designed to increase consumer protection in the nation's mortgage market.
However, many banking officials have expressed concern about one rule, the so-called qualified mortgage rule, because they fear it might tighten restrictions on who banks can lend to, leading to less credit available for low to moderate income borrowers.
"The qualified mortgage rule poses a significant challenge for us as we work to serve the needs of our local community," Tim Zimmerman, CEO of Standard Bank, said in a statement.
Capito and Rothfus, both members of the House Financial Services Committee, support a one-year delay in the rule to re-evaluate its potential effects.
"Since the CFPB proposed these mortgage rules last January, we have heard consistent concerns about the negative effect these rules will have on underserved communities," Capito said.
"Community lenders and advocates need flexibility to help fulfill their missions and serve their communities, and they need the ability to sit down with consumers and tailor products to meet consumers' needs," she said.