ICBA and 44 state associations urged senators to add Title 6 of the House-passed Housing for the 21st Century Act (H.R. 6644) to the ROAD to Housing Act (S. 2651).
Details: In a joint letter to senators, ICBA and the state affiliates said:
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H.R. 6644 garnered overwhelming bipartisan support with a vote of 390-9.
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The provisions in Title 6 would alleviate burdensome regulations on community banks, enabling them to better serve local families, small businesses, and underserved communities without compromising financial stability.
Background: The provisions in Title 6 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 last week urged senators to include the House-passed community bank provisions, saying the provisions in Title VI would provide meaningful regulatory relief for community banks that would allow them to provide more credit for housing, small businesses, and families.
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In a national news release after the House vote last month, 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.