The House of Representative’s Committee on Financial Services is moving forward with the latest round of legislative efforts to amend the Dodd-Frank Act, impose new requirements on the Consumer Financial Protection Bureau, and offer regulatory relief to smaller banks and lenders.
A variety of bills were part of a day-long mark up session on Wednesday and are likely to move onto a committee vote, and possibly one before the full House, in the coming weeks. Among the bills, all filed by Republicans, being prepped for a vote:
H.R. 1195, The Bureau of Consumer Financial Protection Advisory Boards Act
This amendment to the Dodd-Frank Wall Act would create three advisory committees to advise the Bureau of Consumer Financial Protection: the Small Business Advisory Board, the Credit Union Advisory Council, and the Community Bank Advisory Council. The CFPB Director would be required to appoint at least 15, but no more than 20 members to each board or council.
Eligible members of the Small Business Advisory Board include representatives of small business concerns that: provide eligible financial products or services; are service providers to covered persons; and use consumer financial products or services in financing their business activities. In considering appointments to the credit union and community bank councils, the Bureau is encouraged to ensure the participation of credit unions and community banks predominantly serving traditionally underserved communities.
H.R. 601, The Eliminate Privacy Notice Confusion Act
The legislation would amend the Gramm-Leach-Bliley Act to reduce “confusion among consumers that can occur” when they receive annual privacy notices. It would clarify that annual privacy notices are only required when disclosure policies change after the relationship begins, and to the extent an institution shares sensitive personal information with third parties for marketing purposes.
H.R. 685, The Mortgage Choice Act of 2015
The bill would amend the Truth in Lending Act to modify the definition of “points and fees” for purposes of determining whether a mortgage can be a Qualified Mortgage. It would exclude from the calculation of points and fees insurance and taxes held in escrow and fees paid to affiliated companies as a result of their participation in an affiliated business arrangement.
H.R. 1408, the Mortgage Servicing Asset Capital Requirements Act
The bill would require the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration to jointly conduct a study of the appropriate capital requirements for mortgage servicing assets for any banking institution other than an institution identified by the Financial Stability Board as a global systemically important bank. The agencies would be required to report the results of the joint study to Congress within six months following enactment of the bill; no rules implementing Basel III capital requirements or the NCUA capital requirements with respect to mortgage servicing assets may take effect for three months following issuance of the report; and any rules proposed prior to the study must then be re-proposed with opportunity for public comment.
The Community Institution Mortgage Relief Act of 2015
It would amend the Truth in Lending Act to provide a legal safe harbor from escrow requirements for smaller financial institutions that hold loans in portfolio for three years. This bill also amends the Real Estate Settlement Procedures Act and instructs the CFPB to provide exemptions to, or adjustments for, servicers that annually service 20,000 or fewer mortgage loans in an effort to reduce their regulatory burden.