Financial Services Committee Passes Several Bipartisan Regulatory Relief Bills and Federal Reserve Oversight Legislation
July 30, 2014 -
As part of its ongoing efforts to strengthen the economy and hold Washington accountable, the Financial Services Committee today passed several bipartisan regulatory relief bills and legislation to make the Federal Reserve more accountable and transparent. The committee also approved a five-year reauthorization of the Native American Housing Assistance and Self-Determination Act (NAHASDA).
“With millions of our fellow Americans unemployed and underemployed, job number one continues to be jobs creation and economic growth. Our committee has approved dozens of bipartisan bills- several of which are piled up on Harry Reid’s desk- to help alleviate the red tape burden that Washington piles on job creators so all Americans can enjoy a stronger, healthier economy,” said Chairman Jeb Hensarling (R-TX).
The following is a summary of the bills the committee passed:
H.R. 5018, the Federal Reserve Accountability and Transparency Act, sponsored by Rep. Scott Garrett (R-NJ) and Rep. Bill Huizenga (R-MI). H.R. 5018 was approved 32-26.
H.R. 5018 is the first piece of legislation developed as part of the Committee’s Federal Reserve Centennial Oversight Project. It requires the Federal Reserve to adopt a more predictable rules-based policy -- of the Fed’s own choosing -- that leads to a healthy and stronger economy. It also requires the Fed to share with the public whatever rules-based approach it decides to follow. The bill also requires the Federal Reserve to conduct a cost-benefit analysis when adopting new regulations in order to ensure the benefits of proposed regulations outweigh the cost to the economy.
H.R. 3240, the Regulation D Study Act, introduced by Rep. Robert Pittenger (R-NC). H.R. 3240 was approved by voice vote.
H.R. 3240 requires the Government Accountability Office, in consultation with credit unions and community banks, to conduct a study examining Federal Reserve Regulation D minimum reserve requirements. Regulation D forces financial institutions to focus on compliance rather than spending time with consumers to meet their financial needs.
H.R. 3913, a bill to amend the Bank Holding Company Act of 1956 to require agencies to take into account the promotion of efficiency, competition, and capital formation before issuing or modifying certain regulations, sponsored by Rep. Sean Dufy (R-WI). H.R. 3913 was approved 32-22.
H.R. 3913 is based on the common-sense proposition that before any rule can be proposed, a federal agency must determine if the rule promotes efficiency, competition, and capital formation. Instead of forcing financial institutions to spend precious time and money complying with unnecessary bureaucratic red tape, Congress can allow them to focus on encouraging economic growth by providing consumers with financial products and services.
H.R. 4042, the Community Bank Mortgage Servicing Asset Capital Requirements Study Act of 2014, sponsored by Rep. Blaine Luetkemeyer (R-MO). H.R. 4042, as amended, was approved 44-9.
H.R. 4202 requires the Federal Reserve, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation to conduct a study to determine the appropriate capital requirements for mortgage servicing assets for any banking institution other than an institution identified by the Financial Stability Board as a global systemically important bank. H.R. 4042, as amended, also prohibits the implementation of Basel III capital requirements related to mortgage servicing assets for non-systemic banking institutions from taking effect until three months after a report on the study mandated by the bill is transmitted to Congress.
H.R. 5148, the Access to Affordable Mortgages Act of 2014, sponsored by Rep. Blaine Luetkemeyer (R-MO). H.R. 5148 was approved 31-23.
H.R. 5148 would amend federal law to exempt creditors offering mortgages of $250,000 or below from onerous property appraisal requirements stemming from the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 11-203).
H.R. 4329, the Native American Housing Assistance and Self-Determination Reauthorization Act (NAHASDA) of 2014, sponsored by Rep. Steve Pearce (R-NM). H.R. 4329 was approved 47-11.
H.R. 4329 extends the authorization for NAHASDA for five additional years with the following reforms:
- Strengthens vital taxpayer protections and tribal accountability by giving the HUD Secretary the authority to recoup unexpended funds.
- Allows for tribes to pursue alternative funding sources by encouraging private investment.
- Provides Native Americans tribes with greater efficiencies when deploying NAHASDA funds.