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 Friday night.

Road to Passage: 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.

ICBA View: In a national news release, ICBA President and CEO Rebeca Romero Rainey applauded the enactment of the legislation, noting the bill’s bipartisan backing demonstrates community banks’ strong support in Washington.

Legislation Details: The legislation includes provisions supported by ICBA and state community banking groups 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.

Next Up: ICBA continues urging the House to take up and pass the Main Street Capital Access Act (H.R. 6955), comprehensive legislation championed by House Financial Services Committee Chairman French Hill (R-Ark.) that includes more than two dozen community bank priorities.

Grassroots Push: ICBA is calling on community bankers to urge their representatives to support H.R. 6955 before a possible vote this month.

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