Amid House-Senate standoff, ICBA urges inclusion of pro-community bank provisions

Following last week’s Senate passage of a housing bill without ICBA-advocated community bank regulatory relief provisions, ICBA urged lawmakers to adopt these bipartisan provisions in finalizing the legislation.

Competing Bills: After the Senate passed its 21st Century ROAD to Housing Act last week, House leaders rejected calls to swiftly pass the Senate bill, leading to a standoff between the two competing housing bills. The House-passed bill—the Housing for the 21st Century Act (H.R. 6644)—contains the ICBA-backed community bank regulatory relief measures, while the Senate bill does not.

ICBA Letter: In a new letter to House and Senate leadership, ICBA said:

• Lawmakers should adopt the community bank regulatory relief provisions of H.R. 6644, which last month garnered overwhelming bipartisan support with a 390-9 vote in the House.

• The provisions in Title VI of H.R. 6644 would enable community banks to better serve local families, small businesses, and underserved communities without compromising financial stability.

Recent ICBA Advocacy:

• ICBA and state banking groups urged the Senate to include the House community banking provisions in its housing bill.

• Following an advocacy campaign in which ICBA expressed significant concerns regarding an appraisal provision that would have codified the “reconsideration of value” process for property appraisals into the Truth and Lending Act, the Senate modified the legislation to exempt portfolio loans, potentially saving community banks from a significant new regulatory burden.

Next Step: House leaders held a call on Sunday night to strategize their response to the Senate. Options available include putting a privileged motion to conference on the House floor, starting informal negotiations with the Senate, or sending an amended bill back to the Senate.