Senate Democrats Unveil Competing Regulatory Relief Bill

Democratic members of the Senate Banking Committee today released a much narrower regulatory relief bill offered as an alternative to the sweeping bill by committee Chairman Richard Shelby (R-Ala.). Shelby’s bill is set to be considered by the committee on Thursday.

Like Shelby’s bill, the Democratic proposal would allow mortgages held in portfolio to receive the Qualified Mortgage safe harbor (but only for banks with less than $10 billion in assets), reduce the burden of unnecessary privacy notice paperwork and extend the exam cycle for more institutions. The bill excludes other ABA priorities, including provisions adjusting the thresholds for SIFI designation and stress testing requirements, providing for a short-form Call Report and establishing an examination ombudsman.

The bill would also give the Consumer Financial Protection Bureau authority to enforce the Servicemember Civil Relief Act and permanently extend provisions relating to tenants in a property being rented when it is foreclosed upon.