Removing Barriers Blog

Two Regulatory Relief Sections of CHOICE Act introduced in the Senate
Posted September 15, 2016 by CUNA Advocacy

Two CUNA-supported bills included in Chairman Hensarling's Financial CHOICE Act have now also been introduced in the Senate.  Senator Mike Rounds (R-SD) introduced S. 3215, the “Home Mortgage Disclosure Act” and S. 3153, the “Taking Account of Institutions with Low Operations Risk (TAILOR) Act. We sent the senator letters of support for both bills. 
 
The CFPB’s recently finalized amendments to Regulation C (HMDA) would significantly increase the amount of data mortgage lenders, including credit unions, will have to provide. The Bureau will now require credit unions that have originated 25 or more closed-end mortgage loans in the prior year to report dozens of new data points, in addition to what is required under the Dodd-Frank.  Senator Rounds' HMDA bill would raise the threshold that triggers these reporting requirements to 100 closed-end, and 200 open-end mortgages.
 
Constant regulatory changes present a challenge for small depository institutions because the fixed costs of compliance are proportionately higher for smaller-sized credit unions and banks than for large institutions. The TAILOR Act would reduce regulatory burden for financial institutions with lower risk profiles relative to systematically significant institutions by requiring financial regulators to take risk into account when promulgating regulations.