Regulatory Relief Legislation Introduced in U.S. House
Last week, U.S. Rep. Blaine Luetkemeyer, R-Mo., introduced the Community Lending Enhancement and Regulatory Relief Act (CLEAR Relief Act, H.R. 1750), which provides regulatory relief for community-based financial institutions including both credit unions and banks. The legislation, among other things, would provide regulatory relief in the following areas:
- For all institutions with less than $10 billion in assets, exemptions from Dodd-Frank requirements on mortgage escrows and “qualified mortgage” standards for portfolio loans held at least three years;
- An increase in the “small servicer” exemption in the CFPB mortgage servicing rules from 5,000 mortgages to 20,000;
- A requirement for the Financial Accounting Standards Board to do a cost/benefit analysis on generally accepted accounting principles;
- Mirroring provisions for House-passed H.R. 749, on privacy notice elimination.
- Elimination of a requirement that financial institutions verify that ACH payments are not a prohibited transaction, if the financial institution originating the transaction has warranted that they have complied with OFAC regulations.
While this legislation would not cover all regulatory issues facing community lenders, it is a good start. The MCUL and CUNA support H.R. 1750 and ask that you encourage your U.S. representative to cosponsor this legislation.
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. Bryan Laviolette is the editor of Monitor. Contact him by email
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