Senate Committee Advances Bill to Deregulate Financial Services Industry

Dec 06, 2017

Mortgage Bankers Association (MBA) President and CEO Robert Broeksmit acknowledged and defended a news report that he successfully lobbied Treasury Secretary Steve Mnuchin

The Senate Banking Committee has advanced the Economic Growth, Regulatory Relief and Consumer Protection Act, S. 2155, with a bipartisan line-up of 16 committee members supporting the legislation designed to roll back some of the regulations introduced in the Dodd-Frank Act.

In a statement issued by Sen. Mike Crapo (R-ID), the committee’s chairman, the bill will “modernize regulations in a way that makes sense for small financial institutions, benefitting consumers and encouraging economic growth.” Crapo added that smaller regional banks, community banks and credit unions will be the primary beneficiaries.

“The reforms in this bipartisan bill help tailor the current regulatory landscape, while ensuring safety and soundness and relieving the burden on American businesses that are unfairly being treated like the largest companies in our economy,” Crapo said. “This bill holds real promise for Main Street banks, businesses and families.”

Eight Democrats and one Independent joined the committee’s Republicans in co-sponsoring the bill. But Sen. Sherrod Brown (D-OH), the committee’s ranking member, opposed it.

“This bill does make a number of small changes for consumers, and perhaps there more will be adopted,” Brown said. “Here’s the key difference: the banks will be saving real money, but what about working people? There’s nothing to help people with record high levels of student loan debt; nothing to help those with underwater mortgages; and nothing to help workers who are struggling to get by. Some 60 percent of Americans have seen their wages decrease on a real basis since 2006.”

David H. Stevens, President and CEO of the Mortgage Bankers Association, offered his support of the legislation.

“The mortgage related provisions of this bill provide important relief to the housing market by addressing key regulations including HMDA and the TILA/RESPA integrated disclosure,” Stevens said. “We are also glad that the bill amends the SAFE Act to provide increased job mobility for loan originators, and includes language addressing concerns with PACE lending. We now look forward to working with other policymakers as this legislation advances to the full Senate.”

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Phil Hall

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Dec 06, 2017

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