In fact, I have been told by community bankers that they are sometimes compelled to make loans for lower-priced home purchases that are backed by other collateral, such as a car or equipment, because of the excessive burden of complying with the many residential home mortgage regulations and time frames for such small transactions.
As a result, these consumers may not have the benefit of the important consumer protections that having a home mortgage loan provides. Reducing mortgage compliance burden would allow community banks to better meet the critical need for home lending in their communities.