The Senate Wednesday night passed its regulatory overhaul bill. The bill includes a variety of changes to the financial regulatory regime and is supported by credit union trade groups.

The legislation contains a credit union-specific provision that provides that a one-to-four family dwelling that is not the primary residence of a member will not be considered a business loan under the Credit Union Act.

The bill also includes a provision that "provides that certain mortgage loans that are originated and retained in portfolio by an insured depository institution or an insured credit union with less than $10 billion in total consolidated assets will be deemed qualified mortgages under the Truth in Lending Act, while maintaining consumer protections," according to a summary of the bill.

The measure also would exempt depository institutions that have originated fewer than 500 open-end lines of credit and closed-end mortgages in the previous two years from certain HMDA reporting and recordkeeping requirements.

The House has passed Hensarling's Financial CHOICE Act, a much more ambitious overhaul of Dodd-Frank. The bill only passed with Republican votes; not Democrats supported it.

And since the bill includes proposals to greatly decrease the CFPB's powers, it has been clear from the start that it would not pass the Senate.

But since the House passed that bill, Republicans have broken it into smaller pieces, including many that have received some Democratic support.

Hensarling said in an interview on CNBC Wednesday that those are the bills he would like added to the Senate measure.

"What I'm here to do is represent the House," he said, during that interview. He said he was surprised that anyone had suggested that the House might simply accept the Senate version.

Other Republicans on the Financial Services Committee agreed that the Senate bill can be improved.

"This bipartisan legislation is a critical first step to reversing the burdensome financial regulations that have stifled our economy," said Rep. Blaine Luetkemeyer (R-Mo.), chairman of the Financial Institutions and Consumer Credit Subcommittee. "While I am encouraged by Senate passage of this legislation, there are additional bipartisan bills that deserve consideration."

But Rep. Maxine Waters (D-Calif.) , the ranking Democrat on the House Financial Services Committee, condemned the Senate measure..

"To make matters worse, Chairman Hensarling has indicated that he believes the bill doesn't go far enough and is demanding that the Senate pack this already bad bill with even more harmful bills," she said.

For his part, President Trump praised the Senate for passage of the bill, said he would sign it, but added that he looks forward to working with both chambers on reforms to Dodd-Frank that he believes are needed.