Helping Expand Lending Practices In Rural Communities Act
Madam Speaker, I rise today to urge my colleagues on both sides of the aisle to support H.R. 2672, the Helping Expand Lending Practices in Rural Communities Act, as amended. I would like to thank my distinguished colleague, Congressman…
Madam Speaker, I rise today to urge my colleagues on both sides of the aisle to support H.R. 2672, the Helping Expand Lending Practices in Rural Communities Act, as amended. I would like to thank my distinguished colleague, Congressman Barr of Kentucky, for your leadership on this bill.
As the chairman of the Congressional Rural Housing Caucus, I have dealt with the varying definitions of rural for many years. Given that the definitions promulgated by the USDA are problematic on many counts, I was very concerned when I learned that the CFPB originally used them as a guide for their rule.
The original rule by the CFPB would exclude Hidalgo County in my 15th Congressional District in deep south Texas. Hidalgo County includes some urban areas, but much of it is also rural.
It is home to the most colonias in the Nation. Colonias often lack basic infrastructure, such as indoor plumbing and electricity. They are rural by definition. We need to ensure that community banks and credit unions are not prevented from investing in such rural communities.
The CFPB's new mortgage rules discourage risky mortgage lending practices that sparked the financial crisis. However, community banks and credit unions did not cause the crisis and have legitimate reasons for flexibility when it comes to serving rural America.
Rural community bankers know their customers by name; often, they are the only option for credit within hundreds of miles. They understand the unique financial needs of their community and how best to serve the farmers, to serve the ranchers and small businesses that rely on them.
I appreciate that the CFPB has heard our concerns and has responded by offering a short exemption. I believe the petition process enacted by this legislation will only strengthen the CFPB's final rule.
This is an important opportunity given that rural is not easily defined and looks different by region. It makes good sense for the CFPB to follow the USDA's lead and for communities to be able to petition their rural status.
I thank Congressman Barr for his outstanding work on this bill and for including the changes that I proposed. Defining rural on a county- level basis is too arbitrary, given the large size of counties in Texas and other Western States. I do not believe the bill undermines the CFPB's commitment to consumer protection, and I ask my colleagues to support H.R. 2672.