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Tiered & Proportionate Regulatory Relief for Community Banks

In early 2013, ICBA developed and launched a comprehensive and flexible platform of regulatory relief legislation called The Plan for Prosperity. The Plan was presented to community bank allies in Congress with the goal of achieving targeted regulatory relief for community banks through tiered and proportionate adjustments to one-size-fits-all regulations implemented in the wake of the most recent financial crisis.

So far, the Plan for Prosperity has been very well-received, resulting in the introduction and advancement of numerous bills that recognize the demand for tiered and proportionate regulations. If enacted, these bills will ensure that community banks can fully participate in powering our nation’s economic recovery in their respective communities.

Track the Active Provisions of the ICBA Plan for Prosperity

ICBA has pushed hard to fully-implement the Plan, and it has subsequently been endorsed by 38 ICBA state and regional partner associations representing the community banking industry and lead to the introduction of 23 bills in the 113th Congress. However, due to the dwindling number of active legislative days remaining in this Congress, it is increasingly important that community bankers keep pressure on their lawmakers in order to see meaningful regulatory relief advance through both chambers of Congress and ultimately enacted into law.

House Objectives:

Contact Congress Now

In late May, the House Financial Services Committee favorably reported on three bills arising out of ICBA’s Plan for Prosperity, which were further endorsed by 46 state and regional partner associations representing the community banking industry. The bills, which are described below, are now ripe for passage in the House.

  • H.R. 4521, the Community Institution Mortgage Relief Act introduced by Rep. Blaine Luetkemeyer (R-Mo.) would exempt community bank portfolio loans from new escrow requirements and raise the small-servicer exemption threshold from 5,000 to 20,000 loans.
  • H.R. 4466, the Financial Regulatory Clarity Act introduced by Rep. Shelley Moore Capito (R-W Va.) would require federal financial regulators to consider whether proposed regulations are duplicative or inconsistent with existing regulations before issuing them.
  • H.R. 2673, the Portfolio Lending and Mortgage Access Act introduced by Rep. Andy Barr (R-Ky.) would provide that any residential mortgage held in portfolio by the originator is a qualified mortgage, under the CFPB’s ability-to-repay rule.

The Plan for Prosperity-inspired CLEAR Relief Act (H.R. 1750) also continues to gain cosponsors, closing in on 160 bipartisan backers as of early June. Ensure that your lawmaker has heard from your bank and understands what is at stake for your community and your bank if meaningful regulatory relief is not achieved.

Senate Objectives:

Contact Congress Now

The House has made significant strides in advancing many Plan for Prosperity-based regulatory relief provisions, but the Senate also needs to advance its version of the Plan for Prosperity-inspired CLEAR Relief Act (S. 1349) if meaningful relief is to be achieved. Community bankers must continue to press their Senators to take up this much-needed legislation. Make certain that your Senators understand that when it comes to your community bank and your customers, their most important job is to advance S. 1349, the CLEAR Relief Act.

Plan for Prosperity Resources

ICBPAC, a top financial advocacy political action committee, contributed $1.8 million to federal candidates for the 2011-12 election cycle, strengthening the community banking industry’s reputation in Washington. Supported by thousands of community bankers, ICBPAC is a vital part of Be Heard.

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