The House of Representatives passed the Housing for the 21st Century Act (H.R. 6644), which includes ICBA-advocated community bank regulatory reforms and promotes housing affordability.
Details: The bipartisan bill 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 View: In a national news release, 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 she encouraged the Senate to quickly pass it.
Outlook: “We thank House leadership and the House Financial Services Committee for prioritizing this bipartisan legislation and encourage the Senate to quickly pass it,” Romero Rainey said.
Recent Advocacy: ICBA last week urged House members to pass the bill, saying it would spur home construction across the country, promote housing affordability, and help alleviate the housing crisis.