In its markup session last week the House Financial Services Committee pushed 11 bills to the floor of the House. All of them previously had passed the committee or full House in the same or slightly different versions last year, but with Republican control of the Senate, some or all of the bills could get a chance at passage if they pass the House.
Financial Services Committee Chairman Jeb Hensarling, R-Texas, praised the bipartisan nature of the bills, and said that passing regulatory relief for banks and credit unions was an urgent priority.
“It is not an exaggeration to say that community banks and credit unions are withering on the vine. We are losing, on average, more than one a day and they are not perishing of natural causes,” Hensarling said in a news release. “The sheer weight, volume, cost, complexity and uncertainty of federal regulation is a burden that is killing them off. And as they die, unfortunately, so do the dreams of millions of our fellow citizens who rely upon these community financial institutions to achieve their American dream of financial independence.”
Here’s a look at the bills that have been submitted to the full House.
- H.R. 1529, the Community Institution Mortgage Relief Act: This would amend the Real Estate Settlement Procedures Act (RESPA) to provide exemptions from the mortgage escrow account requirements of Dodd-Frank and for small servicers that annually service 20,000 or fewer mortgage loans. The committee approved the bill by a vote of 48-10.
- H.R. 685, the the Mortgage Choice Act: This would change the calculation of points and fees in mortgage loans, allowing more loans to qualify as Qualified Mortgages. The bill also includes a provision that exempts affiliated business arrangement charges from the points and fees disclosure, including fees or premiums for title examination, title insurance, or similar purposes. The committee approved the bill by a vote of 43-12.
- H.R. 650, the Preserving Access to Manufactured Housing Act: This amends the Truth in Lending Act (TILA) to ensure that consumers can have access to manufactured housing by altering the definition of a “high-cost mortgage” as defined by the Qualified Mortgage regulations. The committee approved the bill by a vote of 43-15.
- H.R. 1195, the Bureau of Consumer Financial Protection Advisory Boards Act: This bill would create a small business advisory board to advise the Consumer Financial Protection Bureau (CFPB). The advisory board would provide small businesses the opportunity to weigh in on matters of concern, and for the CFPB to learn about market conditions affecting these businesses. The bill also codifies two other advisory committees, the Credit Union Advisory Council and the Community Bank Advisory Council. The committee approved the bill by a vote of 53-5.
- H.R. 1265, the Bureau Advisory Commission Transparency Act: This would subject the CFPB to the Federal Advisory Committee Act, which among other things would require its committee and subcommittee meetings to be conducted in public. This bill passed the committee by voice vote during the 113th Congress. The committee approved the bill by a vote of 56-2.
- H.R. 299, the Capital Access for Small Community Financial Institutions Act: This allows privately insured state chartered credit unions to apply for membership in the Federal Home Loan Bank System. The committee approved the bill by a vote of 56-1.
- H.R. 601, the Eliminate Privacy Notice Confusion Act: This reduces confusion among consumers by clarifying that they will receive privacy notices after opening a new account when their financial institution’s privacy policies change, rather than an annual notice. The committee approved the bill by a vote of 57-0.
- H.R. 1259, the Helping Expand Lending Practices in Rural Communities Act: This provides an appeals process for areas to be designated as rural for the purpose of exempting certain loans from the CFPB’s Qualified Mortgage rule. The committee approved the bill by a vote of 56-2.
- H.R. 1367, clarifying the Expedited Funds Availability Act’s application to U.S. territories: This improves check-clearing wait times in American Samoa and the Northern Mariana Islands by extending the application of the Expedited Funds Availability Act. The committee approved the bill by a vote of 58-0.
- H.R. 1408 the Mortgage Servicing Asset Capital Requirements Act: This directs federal banking agencies to conduct a study to determine the appropriate capital requirements for mortgage servicing assets for community financial institutions. The committee approved the bill by a vote of 49-9.
- H.R. 1480, the SAFE Act Confidentiality and Privilege Enhancement Act: This says that privileged information shared between federal banking regulators and state regulatory agencies will be protected and remain confidential. The committee approved the bill by a vote of 58-0.