NLBMDA gives bank bill thumbs up
In a statement issued this morning, the National Lumber and Building Material Dealers Association (NLBMDA) said it “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 association said.
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 of 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 NLBMDA said.
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.”
Earlier in the day, the National Association of Home Builders also gave the new legislation its endorsement. According to the NAHB, the law will give banks what is needed to provide more loans while boosting home building and the economy.
“NAHB commends President Trump for working with the House and Senate to advance bipartisan banking reform legislation through Congress,” NAHB chairman Randy Noel said in a statement issued by the association this morning.
A custom home builder from LaPlace, La., Noel added, “S. 2155 will improve credit availability by providing much-needed relief for community banks, which are the most common source of lending for home construction and are key providers of home mortgage loans. In turn, this will support a stronger, more robust recovery of the housing and mortgage markets.”
“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 association said.
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 of 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 NLBMDA said.
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.”
Earlier in the day, the National Association of Home Builders also gave the new legislation its endorsement. According to the NAHB, the law will give banks what is needed to provide more loans while boosting home building and the economy.
“NAHB commends President Trump for working with the House and Senate to advance bipartisan banking reform legislation through Congress,” NAHB chairman Randy Noel said in a statement issued by the association this morning.
A custom home builder from LaPlace, La., Noel added, “S. 2155 will improve credit availability by providing much-needed relief for community banks, which are the most common source of lending for home construction and are key providers of home mortgage loans. In turn, this will support a stronger, more robust recovery of the housing and mortgage markets.”