Senator Bob Corker, a senior member of the Senate Banking Committee, released the following statement after Senate passage on Wednesday of the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155). The bipartisan legislation, authored by Chairman Mike Crapo (R-Idaho) and cosponsored by Senator Corker, is targeted toward helping community banks, credit unions, mid-sized banks and regional banks.
“Since Dodd-Frank was signed into law in 2010, community banks in Tennessee and across our country have faced an overwhelming and disproportionate regulatory burden.
“These reforms are long overdue and not only will help our community banks better serve hardworking Americans but also will ensure small businesses have access to the credit they need. I thank Chairman Crapo for his leadership on this legislation and many of my colleagues for coming together in this bipartisan effort.”
Senator David Perdue (R-GA), a member of the Senate Banking Committee, also praised "the most significant bipartisan rollback of financial regulations since Dodd-Frank was enacted:"
He said, “This regulatory relief is long overdue. Community and regional banks have been hammered by one-size-fits-all government regulations enacted by Dodd-Frank for nearly eight years. As a result, two trillion dollars are sitting on the sidelines, not at work in our economy today. This regulatory rollback, combined with all the regulatory rollbacks of last year, the historic tax cuts, and President Trump’s actions on energy, will continue to revive our economy. This will make a lot more capital available to all of our job creators on Main Street.”
"
Senator Perdue said he worked to secure the following provisions in the final bill "to remove burdensome regulations on regional and community banks:"
· Increase Access To Mortgages- The bill exempts community banks and credit unions that keep mortgages on their own books from the CFPB’s qualified mortgage rule. Today, many small banks and credit unions lack the staff and budget to comply with the thousand page, one-size fit all CFPB qualified mortgage rule and portfolio lending will help restart mortgage lending in small town America.
· Separate Regional Banks from Hundred Billion Dollar Banks- The current asset threshold for the designation of a systemically important financial institutions (SiFi) is so low it encompasses regional banks, subjecting them to the same regulations and reporting requirements as the largest banks in the world. The bill raises SiFi threshold from $50B to $250B and enhances regulators powers to oversee banks with assets that fall between $250B and $100B.
· Improve Consumer Credit Protections- Creates a new national standard for credit protections so all consumers, regardless of where they live, have the ability to freeze their credit easily and at no cost. In addition, veterans and elderly will have increased access to more credit monitoring resources.
Senator Lamar Alexander said, “In my meetings with Tennessee bankers and credit unions, I continue to hear how Washington’s overregulation has meant endless paperwork, less access to home loans for worthy borrowers, and more expensive credit. I support this important legislation to reduce these regulations and help Tennesseans turn to their local financial institution for help buying a home or investing in a small businesses.”
He said the Economic Growth, Regulatory Relief and Consumer Protection Act will:
- Increase access to mortgage loans for potential homeowners.
- Relieve small financial institutions from burdensome reporting requirements.
- Properly tailor regulations to larger financial institutions.
- Improve consumer protections for veterans, senior citizens and those who have fallen on tough financial times.
The bill is supported by the Tennessee Bankers Association, the American Bankers Association, Credit Union National Association (CUNA), the Tennessee Credit Union League, the Independent Community Bankers of America and the Chamber of Commerce, it was stated.