As Congress prepares to vote on the Financial Choice Act, ABA today wrote to House leadership commending the House Financial Services Committee Chairman Jeb Hensarling (R-Texas) for his efforts to bring regulatory relief to the nation’s banks. The full House is expected to vote on the bill tomorrow.
“We agree with members of Congress on the need for strong regulation of our financial system,” ABA said. “However, within the 25,000 pages of new and proposed rules since Dodd-Frank became law are requirements that are harming our ability to serve creditworthy customers and our communities… The Financial Choice Act will help address many of these concerns and allow banks to get back to serving their customers.”
The bill includes several ABA-supported provision that would provide regulatory relief for banks, including a Qualified Mortgage safe harbor for mortgage loans held in portfolio, more tailored supervision based on an institution’s risk profile and business model, greater flexibility for savings associations, relief from various reporting requirements and repeal of the Volcker Rule. ABA also applauded an amendment by Rep. John Faso (R-N.Y.) that would help level the playing field for mutual holding companies and allow them to raise additional capital without placing their mutual structure at risk.