By: Michelle Patana
In the wake of the beginning of the recent recession, many financial institutions were required to complete burdensome paperwork to ensure companies kept with new regulations.
Many of these requirements proved to be damaging to small community banks, and as a result, the Department of Housing and Urban Development recently eliminated a requirement for community bank programs dealing with Federal Housing Administration mortgage loans no longer had to submit internal control and compliance paperwork to the agencies.
"ICBA is pleased that the FHA has eliminated this costly compliance audit for small community banks, which will help them to continue serving their Main Street communities," said Independent Community Bankers of America vice president of Mortgage Finance Policy Ron Haynie.
It's believed that by eliminating this paperwork requirement, community banks will find it easier to provide FHA mortgage and home improvement loans to qualified borrowers, and further contribute to the housing market's recovery, Haynie added.
The ICBA continues to work closely with lawmakers to eliminate burdensome requirement that can negatively affect smaller financial institutions.