House Committee Holds Hearing on Regulatory BurdensOctober 22, 2015
On Oct. 21, the House Financial Services Committee Subcommittee on Financial Institutions and Consumer Credit held a hearing, “Examining Legislative Proposals to Reduce Regulatory Burdens on Main Street Job Creators.” The hearing examined several bills which attempt to simplify the regulatory process for financial institutions, especially small community lenders, and in turn ensure that main street consumers have greater access to the financial services absolutely necessary to survive in this competitive economy.
During his opening statement, Chairman Randy Neugebauer (R-Texas) focused on two of those measures, The SAFE Transitional Licensing Act of 2015(H.R. 2121) and the Preserving Capital Access and Mortgage Liquidity Act of 2015 (H.R. 2473), both of which currently have bipartisan support. H.R. 2121 will amend the S.A.F.E. Mortgage Licensing Act of 2008 to provide a temporary license of 120 days for registered loan originators in certain situations. H.R. 2473 will amend the Federal Home Loan Bank Act to redefine “community financial institution” to include either a federal or state credit union.
However, even with bipartisan support none of the legislation discussed in the hearing has a timeline to be voted out of committee, and with the congressional calendar rapidly filling up for the remainder of the fall it is unlikely that these bills will see action before the New Year.
NSBA continues to support reform which increases small business access to capital and eases the disproportionate regulatory burden placed on small businesses. The American public spends nearly $2 trillion and eight billion hours complying with federal regulations and paperwork requirements each year. This costs small businesses over $11,000 per employee. NSBA favors reforms which may ultimately see these disproportionate burdens reduced for small businesses, and in the 114th Congress support the National Regulatory Budget Act which would set limits on the regulatory costs to businesses.