July 29, 2015 - The House Financial Services Committee advanced bipartisan legislation to relieve community banks from excessive regulation which will promote local economic growth. The six approved measures include provisions from ICBA’s Plan for Prosperity, a community bank regulatory relief platform backed by CBAI.
CBAI strongly supports efforts to advance bipartisan legislation which will relieve community bank overregulation for the benefit of their local customers and communities. Regulations that are tiered to bank size and complexity will help community banks make more loans, promote economic growth and create jobs in their local communities.
The following CBAI/ICBA-advocated bills were approved by the Committee:
- Financial Institution Customer Protection Act (H.R. 766) – Protects financial institutions and their customers from Operation Choke Point. The bill passed on a vote of 35-19.
- Portfolio Lending and Mortgage Access Act (H.R. 1210) – Gives Qualified Mortgage (QM) treatment to loans held in portfolio by the originator. The bill passed on a vote of 38-18.
- Small Bank Exam Cycle Reform Act (H.R. 1553) – Provides an 18-month exam cycle for community banks with $1 billion or less in assets. The bill passed on a vote of 58-0.
- Reforming CFPB Indirect Auto Financing Guidance Act (H.R. 1737) – Reforms the CFPB indirect auto lending compliance and the Equal Credit Opportunity Act. The bill passed on a vote of 47-10.
- Financial Institutions Examination Fairness and Reform Act (H.R. 1941) – Creates a workable exam appeals process and common-sense standards for classifying loans. This legislation passed on a vote of 45-13.
- Homebuyers Assistance Act (H.R. 3192) – Provides for a TILA-RESPA Integrated Disclosure safe harbor. This legislation passed on a vote of 45-13.
CBAI and the ICBA will now focus on moving these bills to the House floor and pursuing House approval so they can then go to the Senate. CBAI appreciates the work and support of the House Financial Services Committee.
These positive actions are the result of intense efforts by CBAI and ICBA lobbyists and grassroots involvement of community bankers across America. They demonstrate that many lawmakers support regulatory relief for community banks, and momentum is growing for ultimate adoption and implementation.