Illinois Congressmen Support the CLEAR Act

September 9, 2013

The Community Bankers Association of Illinois thanks Illinois Congressmen Rodney Davis (R-13th) and Mike Quigley (D-5th) for quigley davisstanding up in support of community bank regulatory relief.  These Illinois Congressmen have joined a bi-partisan coalition of lawmakers to co-sponsor the Community Lending Enhancement and Regulatory Relief Act (CLEAR Relief Act of 2013, HR 1750). 

Community bank’s face a regulatory burden that is completely out of proportion to their size, business model, or risk they pose to consumers or the financial system.  Regulations disproportionally burden community banks because they cannot spread these costs over a large number of customers.  Targeted and sensible regulatory relief will allow community banks to better serve their customers and communities.

The CLEAR Act provisions include:

  • Provide QM status and escrow relief for community bank portfolio loans.
  • Increase the small services exemption threshold.
  • Create an independent appraiser exemption for loans of $250,000 or less.
  • Eliminate the annual privacy notice requirement when a bank has not changed its policies.
  • Exempt community banks (with assets less than $10 billion) from SOX 404(b) assessment and controls requirements.
  • Increase the Small Bank Holding Company asset threshold from $500 million to $5 billion.
  • Require the SEC to conduct a cost-benefit analysis regarding new or amended accounting principles.
  • Coordinate compliance with OFAC programs regarding automated clearing house funds transfers from another financial institution.

Congressmen Davis and Quigley, thank you again for your support for Illinois community banks.