The House Financial Services Committee on Thursday approved 22 bills, many of which credit union trade groups say would provide their institutions with relief from burdensome regulations.
“Most of these bills are aimed at helping smaller banks, credit unions and early growth companies,” panel Chairman Jeb Hensarling (R-Texas) said, as the panel opened the two-day markup on Wednesday. “These are goals that every Democrat and Republican on this committee has said they support.”
While some of the bills gained Democratic support, others were approved along partisan lines, with Democrats saying the bills would loosen regulations too much.
The House already has passed Hensarling's Financial CHOICE Act, which would overhaul Dodd-Frank. But the Senate will not consider that bill since Banking Chairman Mike Crapo (R-Id.) and his Democratic counterpart Sherrod Brown of Ohio have been working on a bipartisan financial regulatory measure.
“We are pleased to see a number of these bills get bipartisan support and look forward to continuing to work with lawmakers as these bills now await House action,” said NAFCU President/CEO B. Dan Berger, following the markup.
“These bills are a step toward removing barriers keeping consumers from more affordable mortgages and other products,” said CUNA President/CEO Jim Nussle.
Credit union trade groups said several of the bills would have an impact on their institutions, including:
- H.R. 1116, which would direct the federal financial institutions regulatory agencies to tailor their rules based on the risk profiles and business models of the institutions.
- H.R. 3072, which would increase the threshold that subjects a financial institution to CFPB supervision from $10 billion to $50 billion. It also would increase the threshold at which a financial institution is subject to CFPB reporting requirements from $10 billion to $50 billion.
- H.R. 2706, which would prohibit a banking agency from directing a depository institution to terminate an account without having a material reason.
- H.R. 2954, which would increase the threshold that triggers Home Mortgage Disclosure Act reporting requirements to 1,000 closed-end and 2,000 open-end mortgages.
The bills now go to the House floor.
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