State Associations Call on Senate to Advance Reg Relief Legislation

As the debate over financial regulatory reform now shifts to the Senate, 52 state associations today called on Senate leadership to support a bipartisan reg relief bill that would help create economic growth and improve the availability of credit to consumers.

The associations encouraged lawmakers to support several measures included in ABA’s Blueprint for Growth, 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. They also called for a review of arbitrary asset thresholds, and for regulators to consider changes to capital and liquidity requirements.

With the Treasury Department, regulators and individual lawmakers all expressing support recently for various reg reform initiatives, the associations expressed optimism for a bipartisan bill to move through the Senate. “It is encouraging to see lawmakers of both parties, the House of Representatives, and the Treasury Department lay the foundation for changes — regulatory calibrations that can kick-start our economy while maintaining a financial system that is safe, sound, and resilient,” they wrote. “We urge the Senate not to allow partisanship to stand in the way of promptly passing much-needed reforms, and we stand ready to work with you in support of the financial needs of America’s communities.”