WASHINGTON, D.C. — Today, by a vote of 258 to 159, the House passed a bipartisan economic regulatory relief package which incorporated three provisions authored by U.S. Representative Ed Royce (R-CA). The Royce provisions are aimed at increasing lending for small businesses, empowering under-banked consumers to access the mortgage market, and improving access to capital for companies looking to go public and hire more workers.
Following passage of S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, Rep. Royce released the following statement:
“The passage of today’s bipartisan regulatory relief package will allow financial institutions to focus on the needs of homebuyers and small business owners instead of complying with burdensome and often flawed regulations.”
“I’m pleased to have three important priorities of mine included in the final legislation that will unleash billions of dollars of capital for small businesses, provide potential homeownership for 26 million ‘credit invisible’ consumers, and empower new companies to tap into nationwide capital markets. These reforms are a major step towards correcting the mistakes of Dodd-Frank—ensuring that our financial system can responsibly increase lending to America’s small businesses.”
Specific Royce Legislative Proposals included in the Economic Growth, Regulatory Relief, and Consumer Protection Act:
Credit Union Residential Loan Parity Act (Sec. 105): Removes loans made for the purchase of non-owner occupied, 1-4 unit dwellings from the calculation of the member business lending (MBL) cap currently imposed on credit unions. If enacted, the Credit Union Residential Loan Parity Act would allow credit unions to lend an additional $11 billion to small businesses, freeing up much needed private sector financing for commercial businesses and rental housing.
Credit Score Competition Act (Sec. 310): Enables Fannie Mae and Freddie Mac to consider alternative credit scoring models when making mortgage purchasing decisions. Alternative credit scoring models are also more likely to take into account rent and utility payments. Allowing the GSEs to consider such scores will bolster the chances of young, African-American, and Hispanic buyers attempting to enter the market.
National Securities Exchange Regulatory Parity Act (Sec. 501): Modernizes Section 18 of the Securities Act of 1933 to eliminate references to specific national securities exchanges and to clarify that the state “blue sky” exemption shall be available for all securities that qualify for trading in the national market system.