FEDERAL GOVERNMENT RELATIONS
House bill would increase transparency about small business lending program risks
A proposed bill supported by the American Bankers Association would require the Small Business Administration to provide and make public more details about 7(a) lending program risks.
Common Cents Act clears House
The House passed by voice vote bipartisan legislation to implement the phaseout of the penny by providing a framework for cash rounding when exact change cannot be provided.
Vought calls for more CFPB oversight, says open banking proposal coming soon
Congress should enact legislation to better define “unfair, deceptive or abusive acts or practices” to avoid abuses by future regulators, and to fund the Consumer Financial Protection Bureau through congressional appropriation to make it more responsive to elected officials, CFPB Acting Director Russell Vought told House lawmakers. He also said the bureau is close to proposing a new open banking rule.
White House announces cybersecurity clearinghouse for software patches
The White House has announced a cybersecurity “clearinghouse” that would coordinate scanning for software vulnerabilities and the distribution of vulnerability patches.
ABA, ICBA join state associations in urging Senate to strengthen stablecoin yield provisions in Clarity Act
In a joint letter to Senate leaders, the American Bankers Association, Independent Community Bankers of America and 76 state associations representing thousands of community financial institutions across the U.S. expressed genuine concerns with the Clarity Act and urged targeted changes to provide greater certainty that payment stablecoins cannot function as substitutes for bank deposits.
Tell senators to close the payment of interest loophole
CFPB pauses planned workforce reduction
The Consumer Financial Protection Bureau has temporarily halted plans to shrink its current workforce by more than half until a new bureau director is in place, according to a court filing.
Housing bill with community bank reg relief title becomes law
Bipartisan housing legislation that includes several ICBA-advocated community bank regulatory relief provisions took effect last Friday night.
The 21st Century ROAD to Housing Act passed Congress in June on an 85-5 vote in the Senate and 358-32 vote in the House, sending the bill to the White House to be signed into law. President Donald Trump canceled the planned signing ceremony, but the bill automatically became law late last week as a 10-day period expired without a veto by the president.
The legislation includes provisions to:
- Allow community banks to hold custodial deposits and more reciprocal deposits without them being considered brokered deposits, which are subject to restrictions.
- Provide an 18-month exam cycle and other exam relief for banks with up to $6 billion in assets.
- Promote the formation of de novo community banks by streamlining the application process.
- Create a two-year pilot program to promote the creation of de novo banks, especially in rural areas, by providing more regulatory, capital and lending flexibility.
- Establish a Treasury Financial Agent program enabling partnerships between minority depository institutions, rural community banks and other financial institutions.
- Require the federal banking agencies to study improving the growth, capital adequacy and profitability of rural depository institutions.