Federal – South Carolina Bankers Association

In response to the national pandemic related to COVID-19, Congress passed the CARES Act which provides many relief measures including the Payroll Protection Program. Below are helpful links to the CARES Act, the Payroll Protection Program and regulatory measures.

Text to H.R. 748, the CARES Act

Payroll Protection Program

Regulator Measures due to COVID-19

The South Carolina Bankers Association is an active advocate on federal legislative initiatives important to banking with South Carolina’s congressional delegation and their staff both in Washington D.C. and here in South Carolina. South Carolina is also fortunate to have Sen. Tim Scott on the Senate Banking committee. To view contact information for members and staff of our Congressional delegation click here.

Additionally, SCBA conducts its annual Washington Trip each spring, taking a group of our bankers to D.C. to speak with our delegation and regulators. The trip is held concurrently with the American Bankers Association’s Government Relations Summit.

Important Federal Regulatory Issues

Regulatory Relief

The House passed S.2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act on May 22, 2018, and President Trump is expected to sign the bill soon. This is a major overhaul of restrictive banking regulations passed subsequent to the Dodd-Frank Act. With S.2155, banks – particularly community banks – will be able to better serve their business and consumer customers.

Highlights of S.2155 include:

Simplifying capital calculations for community banks with less than $10 billion in assets;
Designating mortgages held in portfolio as Qualified Mortgages for banks with less than $10 billion in assets;
Expanding eligibility for the 18-month exam cycle to banks with less than $3 billion in assets;
Providing relief from certain appraisal requirements for rural real estate transactions under $400,000;
Providing relief for recent, extensive changes to HMDA for banks that have originated fewer than 500 mortgage loans annually in each of the last two years;
Providing charter flexibility for federal thrifts with less than $20 billion in assets;
Providing relief from the Volcker Rule for banks with $10 billion or less in assets and trading assets and liabilities comprising not more than 5% of total assets;
Providing relief from company-run stress tests for medium size and most regional banks; and,
Increasing the bank asset threshold to $250 billion to trigger enhanced regulation for systemically important financial institutions.

SCBA’s more detailed summary can be found here.

The text of S.2155 can be found here: https://www.congress.gov/bill/115th-congress/senate-bill/2155/text

Flood Insurance

The National Flood Insurance Program was extended through July 31 as part of the government spending bill passed in March.

CFPB Reform

Reform of the Consumer Financial Protection Bureau remains a top priority for SCBA. The House’s CHOICE Act includes reform provisions such as:

changing the CFPB’s name of the CFPB to the “Consumer Law Enforcement Agency and tasking it with the dual mission of consumer protection and competitive markets, with cost-benefit analyses of rules;
restructuring the agency as an Executive Branch agency with a single director removable by the President at will;
making the agency subject to Congressional oversight and the normal Congressional appropriations process.
eliminating the CFPB’s supervisory function and holding it responsible for enforcing the enumerated consumer protection laws; and,
removing the agency’s UDAAP authority.

Regulatory Relief

Highlights of S.2155 include:

Simplifying capital calculations for community banks with less than $10 billion in assets;
Designating mortgages held in portfolio as Qualified Mortgages for banks with less than $10 billion in assets;
Expanding eligibility for the 18-month exam cycle to banks with less than $3 billion in assets;
Providing relief from certain appraisal requirements for rural real estate transactions under $400,000;
Providing relief for recent, extensive changes to HMDA for banks that have originated fewer than 500 mortgage loans annually in each of the last two years;
Providing charter flexibility for federal thrifts with less than $20 billion in assets;
Providing relief from the Volcker Rule for banks with $10 billion or less in assets and trading assets and liabilities comprising not more than 5% of total assets;
Providing relief from company-run stress tests for medium size and most regional banks; and,
Increasing the bank asset threshold to $250 billion to trigger enhanced regulation for systemically important financial institutions.

SCBA’s more detailed summary can be found here.

The text of S.2155 can be found here: https://www.congress.gov/bill/115th-congress/senate-bill/2155/text

Flood Insurance

The National Flood Insurance Program was extended through July 31 as part of the government spending bill passed in March.

CFPB Reform

Reform of the Consumer Financial Protection Bureau remains a top priority for SCBA. The House’s CHOICE Act includes reform provisions such as:

changing the CFPB’s name of the CFPB to the “Consumer Law Enforcement Agency and tasking it with the dual mission of consumer protection and competitive markets, with cost-benefit analyses of rules;
restructuring the agency as an Executive Branch agency with a single director removable by the President at will;
making the agency subject to Congressional oversight and the normal Congressional appropriations process.
eliminating the CFPB’s supervisory function and holding it responsible for enforcing the enumerated consumer protection laws; and,
removing the agency’s UDAAP authority.

Helpful Federal Links

Senate Banking, Housing, and Urban Affairs Committee

House Committee on Financial Services

Congress.gov – Links to federal legislation as well as other Congressional activities.

Please contact Neil Rashley with SCBA with any questions you may have on federal legislation: nrashley@scbankers.org or (803) 779-0850.