Senators Bob Corker and David Perdue and Rep. Tom Graves applauded passage by the House of financial reform.
Senator Corker commented after the House of Representatives passed the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155), which is targeted toward helping community banks, credit unions, mid-sized banks and regional banks. The bipartisan legislation, authored by Chairman Mike Crapo (R-Idaho) and co-sponsored by Senator Corker, now goes to the president’s desk to be signed into law.
Senator Corker said, “I am glad the House has passed our legislation to help reverse some of the overwhelming and disproportionate regulatory burdens Dodd-Frank has placed on community banks and credit unions in Tennessee and across our country.
“These reforms are long overdue and not only will help these entities better serve hardworking Americans but also will ensure small businesses have access to the credit they need.
I thank my colleagues for coming together in a bipartisan effort to give regulatory relief to these institutions and look forward to President Trump signing this legislation into law.”
Rep. Graves said, “This bill is a huge win for Main Street. By repealing some of the most harmful Dodd-Frank regulations, it frees credit unions and community banks from the crushing regulatory environment imposed during the Obama administration. These community financial institutions, which closed at an unprecedented rate after Dodd-Frank was enacted in 2010, are a lifeline in many rural areas and small towns. Freeing these community institutions will increase access to credit and help get the economy moving in some of the last areas to recover from the Great Recession.
“Additionally, while this bill is a big step in the right direction, we must build on these initial reforms by providing even more relief to local banks and the communities they support. My Financial Services Appropriations bill includes provisions to do just that. I hope we can use today’s momentum to pass my bill through the House later this summer.”
He said more than 1,900 community financial institutions disappeared after the Dodd–Frank Wall Street Reform and Consumer Protection Act was enacted in 2010.
Senator Perdue said the legislation "will free up capital not at work in our economy today."
He said, “This regulatory relief is a long overdue win for small businesses in Georgia and across America. For the past eight years, community and regional banks – that had nothing to do with the 2008-2009 financial crisis – have suffocated under Dodd-Frank’s onerous, one-size-fits-all regulations. After a decade of stagnant growth, as much as $2 trillion will be freed up on the balance sheets of American banks. Local businesses and homeowners will have greater access to capital because of this bill. This major bipartisan action will continue President Trump’s historic regulatory rollback and build on his effective economic agenda.”
Prior to passing the House of Representatives 258-159, the rollback plan passed the Senate on March 14 with a bipartisan vote of 67-31. Senator Perdue said the bill provides major regulatory relief for community banks, credit unions, mid-sized banks, and regional banks.
He said he worked to secure the following provisions:
- Increased Access To Mortgages: Exempts community banks and credit unions that keep mortgages on their own books from the CFPB’s qualified mortgage rule, which will help restart mortgage lending in small town America.
- New Threshold For Regional Banks: Raises the systemically important financial institutions (SIFI) threshold from $50 billion to $250 billion so regional banks are no longer subjected to the same regulations and reporting requirements as the largest banks in the world.
- Improved Consumer Credit Protections: Increases access to credit monitoring services for veterans and elderly, and streamlines credit protection standards so consumers have the ability to freeze their credit easily.
Highlights of the legislation include:
· Improves consumer access to mortgage credit;
· Provides regulatory relief for small financial institutions and protects consumer access to credit;
· Provides specific protections for veterans, consumers, senior citizens, victims of fraud and homeowners; and
· Tailors regulations for banks to better reflect their business models.