Industry NewsMortgage

Lawmakers seek ‘right-sized’ regs for small lending institutions

Regulators explain efforts to reduce burden on community banks

Having heard industry trade groups describe the challenges they are facing in a heightened regulatory environment, members of the House Financial Services Committee entertained testimony last week from federal and state regulators about the measures they are taking to reduce the negative impact of new rules and regulations on small, community-based banks and lending institutions. On April 15, the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit conducted a hearing to provide an overview of the current regulatory climate and how it affects the ability of community financial institutions to provide financial services or products to consumers. A week later on April 23, the subcommittee reconvened to hear testimony from regulators on the efforts they are taking to tailor regulations, policies and supervisory activities to the particular risks of community banking organizations, as well as how they communicate new requirements to these ent...