A House vote on Tuesday has cleared the path for a repeal of some of the most demanding parts of the Dodd-Frank Act, which was put in place in 2010 as a response to the collapse of the financial and mortgage markets.
The Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155), originally introduced by Idaho Republican Sen. Mike Crapo, chairman of the Senate Banking Committee, and passed in the Senate in March, was approved by a vote of 258-159 in the House and will now go to President Donald Trump for his signature.
The president tweeted Wednesday morning, “Big legislation will be signed by me shortly.”
At its core, the legislation aims to reduce compliance burdens mainly on midsize, regional banks by lifting various demands on financial institutions with assets less than $250 billion. The previous threshold was $50 billion.
The bill also eliminates the need for some small lenders to meet certain requirements under the Home Mortgage Disclosure Act.
“This step toward right-sizing regulation will allow local banks and credit unions to focus more on lending, in turn propelling economic growth and creating jobs on Main Street and in our communities,” Crapo said in a statement. “This is an important moment for small financial institutions, small businesses and families across America.”
He noted that the bill is “the most significant piece of regulatory reform legislation for community financial institutions in nearly a decade,” saying “This is a moment years in the making.”
