ICBA urges Senate to include community bank provisions in housing bill

ICBA urged senators to include House-passed community bank provisions in the ROAD to Housing Act (S. 2651). The bipartisan provisions were passed with overwhelming support in the House version last month but are not included in the Senate bill.

Details: In a new letter, ICBA:

• Urged senators to include Title VI of the Housing for the 21st Century Act (H.R. 6644), “Strengthening Community Banks’ Role in Housing,” in the ROAD to Housing Act.

• Said the provisions in Title VI would provide meaningful regulatory relief for community banks that would allow them to provide more credit for housing, small businesses, and families.

Background: The bipartisan H.R. 6644, which passed the House last month on a 390-9 vote,

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 Support: In a national news release after the House vote, 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 encouraged the Senate to quickly pass it.