[Washington, DC] -
The National Lumber and Building Material Dealers Association (NLBMDA) applauds action taken by the White House and Congress to make needed changes to America’s banking and finance laws. The changes alleviate some of the regulatory constraints on community banks that have impeded a more robust housing and economic recovery. NLBMDA supports the changes and is a welcome development for the housing industry.
The Economic Growth, Regulatory Relief, and Consumer Protection Act (Public Law No: 115-174) was signed into law yesterday by President Trump after the House or Representatives approved the legislation earlier this week. The Senate had previously approved the bill in March.
Several commonsense changes should allow banks to more easily lend to creditworthy borrowers. Under the Dodd-Frank Act, which was signed into law in 2010 following the financial crisis, banks with more than $50 billion in assets were subject to yearly stress tests and higher capital requirements. The new law raises that threshold to $250 billion, freeing more than 20 banks and financial firms from those rules.
The new law also includes measures designed for community banks. It exempts banks that extend 500 or fewer mortgages a year from reporting home loan data to federal regulators and broadens the definition of qualified mortgages.
“Reducing the regulatory burdens for community banks is welcome news for residential construction,” said Jonathan Paine, President and CEO of NLBMDA. “NLBMDA supports the changes allowing banks to responsibly lend capital as part of a healthy housing market.”