Federal

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 LEGISLATIVE 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.

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

GRASSROOTS – COMMUNICATING OUR STORY

It’s important for our delegation, as well as the public and the media, to hear from our bankers how laws and regulations affect banking and our communities. To effectively do this, the ABA offers Bankers Speak Up, an excellent resource for materials, information and media for you to tell our story.

Credit Union Competition

Congress established credit unions in the 1930s to provide small-dollar loans to close-knit groups of people of modest means. To encourage credit unions in their mission, Congress exempted credit unions from federal income taxes.
However, many of today’s credit unions bear little resemblance to the industry that received this special tax exemption and today have become indistinguishable from the banking industry. Credit unions have leveraged their taxpayer subsidy to aggressively grow—becoming a $1 trillion industry. And as the credit union industry expands, it does so at the expense of all taxpayers.

Position

The credit union tax exemption is no longer justified. Credit unions have drifted from their original mission, and have outgrown their special tax-exempt status. Taxpayers can no longer afford to continue subsidizing the credit union industry. The goal is to have these large, aggressive credit unions return to their original mission or become subject to the same regulatory, supervisory and tax requirements as banks.

Enough is Enough: Say NO to Credit Union Expansion

The following materials put into perspective how credit union competition affects US in South Carolina. Please share this information with your representatives.

CU Real Story
Who Receives CU Mortgage Loans?
Top CU Business Lenders
Featured Graph

Click here for much more information provided by the ABA.

Follow Along... It's Time To Pay!

Helpful Federal Links

 

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