The Asian American Hotel Owners Association (AAHOA), whose 10,000 members own more than 40% of all U.S. Hotels, has come out in support of Congressman Bill Posey's (R-FL) bipartisan legislation (H.R. 1723) to aid economic recovery by preventing federal bank regulators from arbitrarily penalizing community banks for working with borrowers to modify their loans or accepting mortgage payments from someone other than the borrower.
"Many of our nation's hotels are small businesses or began their lives as small businesses," said Congressman Posey who's Common Sense Economic Recovery Act has earned the bipartisan support of 52 Members of Congress. "I'm pleased that the members of the Asian American Hotel Owners Association have expressed their support for this legislation, which will go a long way toward providing small businesses with access to the capital they need to expand and create jobs."
"Hotel owners create jobs, but to do this we need access to capital," said Hemant Patel, Chairman of the Asian American Hotel Owners Association. "The lifeblood of the free-market American economy is capital. We support this legislation because it recognizes those borrowers who are making payments on time and it allows banks to re-engage with the small business community to get our economy moving again. Congressman Posey's bill is a major step in the right direction."
Since the 2008 financial crisis, federal bank regulators have been unnecessarily obstructing the ability of community banks to make and modify loans to small businesses and mortgage recipients. The Common Sense Economic Recovery Act of 2011 would stop regulators from the assigning of performing loans to non-accrual status, which can impair the bank's financial health and choke ability to lend, and lead them to foreclose on borrowers.
The legislation would treat any loan as a performing loan if it is 1) current, 2) no more than 30 days delinquent in last 6 months, 3) an amortizing loan, and 4) not funded through an interest reserve account. The bill also directs regulators to report to Congress ways to prevent contradictory guidance from the financial regulators. The bill would sunset two years after enactment.