House passes ICBA-supported regulatory relief bill

The House of Representatives passed the Housing for the 21st Century Act (H.R. 6644), which includes ICBA-advocated community bank regulatory reforms and promotes housing affordability.

Details: The bipartisan bill would:

• Allow community banks to hold custodial deposits and more reciprocal deposits without them being considered brokered deposits.

• 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 for these banks.

• Establish a Treasury Financial Agent program enabling partnerships between minority depository institutions, rural community banks, and other financial institutions.

ICBA View: In a national news release, ICBA President and CEO Rebeca Romero Rainey said the bill’s numerous pro-community bank regulatory reforms will help spur home construction nationwide and alleviate the housing crisis, and she encouraged the Senate to quickly pass it.

Outlook: “We thank House leadership and the House Financial Services Committee for prioritizing this bipartisan legislation and encourage the Senate to quickly pass it,” Romero Rainey said.

Recent Advocacy: ICBA last week urged House members to pass the bill, saying it would spur home construction across the country, promote housing affordability, and help alleviate the housing crisis.

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