Tester backs community bank and credit union legislation
Senator: Main Street lenders shouldn’t be punished for the financial crisis
(U.S. Senate) – Senator Jon Tester, a senior member on the Senate Banking Committee, is backing a bill to provide regulatory relief to community banks and credit unions while also protecting consumers.
“Main Street lenders shouldn’t be punished for the financial crisis. They weren’t the ones who got us into that mess,” Tester said. “This bill will provide common sense regulatory relief so small lending institutions can continue to help families buy their first home and support small businesses as they expand, while also protecting financial consumers.”
“Montana’s credit unions applaud Senator Tester’s continued efforts to support community-based financial institutions. We are proud that our senator is looking for ways to reduce the stifling regulatory burden heaped upon those that didn’t cause the financial collapse and we stand ready to work with him to find meaningful regulatory relief,” said Tracie Kenyon, President and CEO of the Montana Credit Union Network.
Tester’s Community Lender Regulatory Relief and Consumer Protection Act of 2015 does the following things:
• Provides Qualified Mortgage status for certain loans held in portfolio by depository institutions under $10 billion in total consolidated assets
• Streamlines annual privacy notifications that banks are required to provide customers
• Extends examination cycles to 18 months for well-capitalized banks under $1 billion in total assets
• Allows privately insured credit unions to become members of the Federal Home Loan Bank System
• Expands access to the benefits of the JOBS Act by harmonizing the SEC registration and deregistration thresholds for savings and loan holding companies and bank holding companies
Senator Tester previously introduced the CLEAR Relief Act and the CLEAR Plus Act. Parts of those bills are included in Tester’s new bill.