Amended housing legislation text that includes ICBA-backed community bank provisions has been released ahead of an expected House floor vote this week.
Details: House Financial Services Committee Chairman French Hill (R-Ark.) and Ranking Member Maxine Waters (D-Calif.) last week reached an agreement on amended bill text containing most of the community bank policies in H.R. 6644, which passed the House in February by a 390-9 vote.
Background: The revised legislative text contains provisions that would:
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Allow community banks to hold custodial deposits and more reciprocal deposits without them being considered brokered deposits.
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Provide an 18-month exam cycle and other exam relief for banks with up to $6 billion in assets.
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Promote the formation of de novo community banks by streamlining the application process.
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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.
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Establish a Treasury Financial Agent program enabling partnerships between minority depository institutions, rural community banks, and other financial institutions.
ICBA Advocacy:
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ICBA in March urged the Senate to include community bank provisions in the ROAD to Housing Act (S. 2651), noting that the bipartisan provisions were passed with overwhelming support in the House version.
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In a national news release after the House vote, ICBA said the bill’s numerous pro-community bank regulatory reforms would help spur home construction nationwide and alleviate the housing crisis while encouraging the Senate to quickly pass it.