The Senate voted 85-5 today to pass a bipartisan housing package that includes several provisions related to banking.
The 21st Century ROAD to Housing Act would reward communities that build more housing supply, ease environmental review of new construction, rethink regulations that hamper additional lending for small-dollar mortgages, and expand tenant assistance and protections. The legislation also includes provisions related to brokered deposits, bank examinations, de novo bank formation and a mentor-protégé program pairing large financial institutions with smaller depository institutions.
The legislation combines elements of separate housing bills introduced by the Senate Banking Committee and House Financial Services Committee. With the Senate approving the revised bill, the House may consider the legislation as early as Tuesday, Politico reported.
American Bankers Association President and CEO Rob Nichols applauded the Senate’s passage of the bill, which he said would expand housing opportunities nationwide while helping to ensure community banks can operate under a more balanced regulatory framework.
“The legislation includes targeted regulatory and examination relief for smaller institutions, supports the creation of new banks, and fosters stronger partnerships between large banks and community-based financial institutions to better serve local needs,” Nichols said. “It also broadens banks’ capacity to make essential investments — including those tied to Community Reinvestment Act priorities in affordable housing, financial education, and community development — by increasing the Public Welfare Investment cap for the OCC and Federal Reserve.
“We congratulate Senate Banking Committee Chairman Tim Scott and Ranking Member Elizabeth Warren on today’s vote and urge the House to move quickly to advance this important legislation,” he added.
