Senate passes housing bill as ICBA continues push for reg relief provisions

The Senate passed housing legislation without ICBA-advocated community bank regulatory relief provisions, though ICBA continues working to advance these policies as the debate continues.

Senate Vote: The Senate passed the 21st Century ROAD to Housing Act by a bipartisan vote of 89-10. The measure may proceed to a conference committee to reconcile differences between the House and Senate versions.

Previous House Vote: The House last month voted 390-9 to pass its version of housing legislation—the Housing for the 21st Century Act (H.R. 6644)—with numerous community bank regulatory relief provisions in Title VI.

Push for Senate Inclusion: ICBA and state banking groups have urged the Senate to include the House community banking provisions in its version. ICBA will continue working to ensure their inclusion in any final housing legislation.

House Concerns: Following the Senate vote, House Financial Services Committee Chairman French Hill (R-Ark.) said, “It is critical we get the details right and mitigate some of the concerns raised by House members with the Senate bill.” Prior to the Senate vote, Hill warned that the House may need to push for a formal conference with the Senate, and House leaders have said they’re willing to force a formal conference negotiation.

Senate View: Senate Banking Committee Chairman Tim Scott (R-S.C.) and Ranking Member Elizabeth Warren (D-Mass.) countered that the Senate bill already reflects House input and that a conference committee is unnecessary.

Appraisal Provision Removed: 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: The Senate bill’s path forward is now uncertain. The legislation could either move to the House of Representatives for a vote on the Senate-passed bill or proceed to a formal conference committee to resolve the differences between the two versions. ICBA remains engaged with policymakers as discussions continue.