Community Bank Regulatory Tailoring Act
Congress Proposes Bill to Ease Rules for Thousands of Local Banks and Credit Unions
Legislative Progress
Key Points
- This bill, introduced by Mr. Barr, would change the rules for local banks and credit unions by raising the dollar amounts that trigger certain government oversight. Currently, many laws use old dollar amounts that have not kept up with the size of the economy, forcing smaller institutions to follow rules meant for much larger banks.
- The proposal updates several major laws, including those regarding mortgage reporting and community investment. For example, it would raise the limit for certain mortgage disclosure requirements from $10 million to $180 million, meaning many smaller lenders would have less paperwork to file with the government.
- Local credit unions would also see significant changes. The bill increases the threshold for certain safety and soundness requirements from $500 million to $2 billion. This is intended to help these smaller institutions focus more on serving their members rather than spending money on complex regulatory compliance.
- To make sure these limits stay current, the Federal Reserve would be required to update these dollar amounts every five years starting in 2031. These future updates would be based on how much the total U.S. economy grows, ensuring that inflation does not accidentally push small banks into "big bank" categories later on.
- By reducing the cost of following government rules, the bill aims to help local banks stay competitive. Supporters believe this will lead to more lending in local communities, while critics may worry that less oversight could lead to more risk in the financial system.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Placed on the Union Calendar, Calendar No. 480.
The bill is now on the schedule for the full chamber to consider. It's in line for debate and a vote.
Reported (Amended) by the Committee on Financial Services. H. Rept. 119-558.
Ordered to be Reported (Amended) by the Yeas and Nays: 33 - 21.
The committee approved this bill and is sending it to the full chamber for a vote. This is a significant step — most bills never get this far.
Committee Consideration and Mark-up Session Held
Referred to the House Committee on Financial Services.
Votes
No votes have been recorded for this legislation yet.
Related News
5 articles
Hill, Barr introduce community banking package
House Financial Services Chair French Hill and Subcommittee Chair Andy Barr introduced the Main Street Capital Access Act, a package of 29 bills including the Community Bank Regulatory Tailoring Act, aimed at easing regulations on small and mid-size banks to increase local access to capital.
Congress Targets Housing Crisis as Solutions Elude Trump
The New York Times reports on a bipartisan push in Congress to address the housing shortage through regulatory relief. The package includes measures like the Community Bank Regulatory Tailoring Act, which aims to reduce compliance costs for small lenders to stimulate mortgage availability.
Maxine Waters pushes 10% credit card rate cap as GOP advances bank relief
During a markup of the Community Bank Regulatory Tailoring Act, Ranking Member Maxine Waters introduced an amendment to cap credit card interest rates at 10%. The amendment was ruled non-germane by Chairman French Hill, highlighting partisan divisions over the regulatory relief package.
Source Information
Document Type
Congressional Bill
Official Title
Community Bank Regulatory Tailoring Act
Data Sources
Sponsor
Cosponsors
(2)Analysis generated by AI. Always verify with official sources.