WASHINGTON—NAFCU and CUNA plan to closely monitor a House Financial Services Committee mark-up Wednesday for HR 2896, a bill intended to reduce regulatory burden on smaller FIs.
HR 2896, the Taking Account of Institutions with Low Operation Risk (TAILOR) Act, would ensure regulators like NCUA and CFPB do not use a one-size-fits-all approach to rulemaking.
The bill, introduced last year by committee members Scott Tipton (R-CO) and Andy Barr (R-KY), would provide regulatory relief to smaller community banks and credit unions by requiring federal regulators to tailor their rulemaking to fit the institutions’ business models and risk profiles.
“The bill would also require NCUA and CFPB to testify annually before the House Financial Services and Senate Banking Committees on specific actions taken to tailor the agency’s rulemakings as required by the bill,” NAFCU explained.
Both NAFCU and CUNA support the legislation.
“We sent a letter of support on this legislation shortly after it was introduced in July, so it’s nice to see it is being marked up by the committee,” said Chief Advocacy Officer Ryan Donovan.
Donovan added that CUNA this week will follow Thursday’s Senate Banking Subcommittee hearing on the equity market structure.
NAFCU said it will also follow the mark-up of two more bills this week: HR 2901, the Flood Insurance Market Parity and Modernization Act, would amend technical requirements for flood insurance to encourage lenders to accept private flood insurance for federally backed mortgages. And HR 2121, the SAFE Transitional Licensing Act, would amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide a temporary license for 120 days for registered loan originators that are moving from a financial institution to a state-licensed non-bank originator, or moving interstate to a state-licensed loan originator in another state.