House Committee Passes ABA-Advocated Bills

During a markup yesterday and today, the House Financial Services Committee approved several regulatory relief bills advocated by the American Bankers Association as part of its Blueprint for Growth. Almost all were approved with bipartisan majorities. H.R. 3299 — a bill codifying the “valid-when-made” doctrine, which ensures validly made loans remain valid when they are sold or assigned but which has come under question in the courts — cleared on a 42-17 vote. The committee also passed a bill (H.R. 4296) with a 42-18 vote that would prohibit the establishment of operational risk capital requirements based on a number of factors.

The committee approved a number of mortgage-related bills, including H.R. 1153, which would clarify the Qualified Mortgage points and fees test (46-13 vote); H.R. 3978, which would allow the accurate disclosure of title insurance premiums and potential discounts under the TILA-RESPA integrated disclosures (53-5 vote); and H.R. 3221, which would eliminate appraisal requirements for certain portfolio loans (32-26 vote).

The committee also passed bills addressing large bank stress tests and the “living will” process. H.R. 4293 passed on a 38-21 vote; the bill would make the Dodd-Frank stress tests more transparent and subject the scenarios and methodologies regulators require to notice and comment. Meanwhile, a bill to extend the submission cycle for large bank resolution plans to once every two years and require timely regulator feedback (H.R. 4292) sailed through unanimously.