By Scott Latham
The Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) gained new life upon its recent passage by the U. S. Senate Committee on Banking, Housing and Urban Affairs. After months of seemingly little hope, a group of 22 bipartisan senators came together in support of legislation to bring substantial reform to our nation’s financial system. This action is the first of its kind in a number of years, and we applaud these efforts, which will bolster economic growth through commonsense provisions, including the rightsizing of rules that apply to community banks.
The Act takes a welcomed first step by rightsizing regulatory burdens that disproportionately affect many financial institutions as well as the customers they serve. For too long, banks have been impeded in their ability to best serve their customers because of unnecessary and irrational regulatory burden. S. 2155 enables the banking industry in Alabama and throughout America to more effectively lend to and support the financial needs of customers and communities they serve.
Other provisions of S. 2155 include consumer protections for veterans, senior citizens and victims of fraud. The Economic Growth, Regulatory Relief and Consumer Protection Act has the best economic interests of consumers at heart by providing these protections along with the promise of economic growth.
Additionally the legislation: designates mortgages held in portfolio as Qualified Mortgages for banks with less than $10 billion in assets; provides relief from appraisal requirements for smaller mortgages; institutes longer examination cycles for community banks; simplifies capital calculations for community banks; and ends stress tests for banks with less than $100 billion in assets.
Some in Congress are making false claims about this bill, arguing that it rolls back regulation. The truth is that the bill brings about sensible changes to a seven-year-long Washington overreach and reaffirms the lessons learned about what works versus what hinders. Among those calling for change has been top financial regulators who have also voiced support for the proposed bill.
The bipartisan cooperation given so far is only the beginning of what can be attained with the continued strong support of the Senate and the House in the ultimate passage of this bill. The most important beneficiaries, however, will be everyday Americans who will have greater access to credit and a reaffirmation that Washington can and will come together when it’s in the best interest of the people.
Scott Latham is the president and CEO of the Alabama Bankers Association.
