New Bills Could Impact Lenders, Deregulation Tops the Schedule


The House Financial Services Committee (FSC) has
begun to schedule hearings for the new year and several bills will be on the
agenda that could potentially impact lenders and/or consumers. FSC’s Subcommittee
on Financial Institutions and Consumer Credit has two hearings on the docket in
January, the third and fourth on “Legislative Proposals for a More Efficient
Federal Financial Regulatory Regime”

According to the committee’s memorandum, the
following measures will be under discussion.  

  • H.R. 1264, the Community Financial Institution
    Exemption Act. This bill seeks to amend
    the Consumer Financial Protection Act of 2010 (we assume this is a reference to
    Dodd-Frank) to exempt community financial institutions, (an insured depository
    institution or credit union with under $50 billion in combined assets), from
    all rules and regulations issued by the Consumer Financial Protection Bureau
    (CFPB). H.R. 1264 was introduced by Roger Williams (R-TX).

  • H.R. 4648, The Home Mortgage Reporting Relief
    of 2017, introduced by Tom Emmer (R-MN), provides a one-year safe harbor
    for financial institutions from compliance with the data collection and
    reporting requirements issued by CFPB last September and October as amendments
    to the Home Mortgage Disclosure Act (Regulation C). The legislation also restricts the CFPB’s
    ability to make any of the new data collected and reported publicly available.

  • H.R. 4725, the Community Bank Reporting Relief
    amends the Federal Deposit Insurance Act to direct federal banking
    regulations to issue new regulations allowing reduced reporting requirements
    for depository institutions with consolidated assets of $5 billion or less when
    making their first and third reports of condition for a year. The bill was introduced by Randy Hultgren

  • H.R. 2683, the Protecting Veterans Credit Act of
    This measure would amend the Fair Credit Reporting Act to exclude from
    consumer credit reports information on a veteran’s medical debt if the medical
    care relating to the debt antedates the report by a year or more. It also excludes information negatively
    mischaracterizing medical debt that has been fully paid or settled. The bill would also establish a dispute
    process for veterans who can documents that the Veterans Administration (VA)
    has liability for the debt.

  • A final, as yet unnumbered, bill submitted by
    Steve Pearce (R-NM) would amend the Truth in Lending Act to remove certain sellers
    who finance the sale of residential properties from the definition as a loan
    originator. The exclusion would apply only to sellers, whether persons or
    institutions, who finance the sale of no more than five residential properties
    in a 12-month period, and did not play a role in constructing the residence.
    The law would not include financing that was considered a high-cost mortgage,
    featured negative amortization, or contained certain adjustable rate contingencies.

The two upcoming hearings are scheduled for
January 9 and 10.

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