CREF Policy Update April 10, 2025
House Financial Services Committee Votes to Repeal Dodd-Frank Section 1071 During Marathon Markup Hearing
On Wednesday, the full House Financial Services Committee held a 12-hour markup hearing, hotly debating stablecoin legislation and four other bills, including H.R. 976 (the 1071 Repeal Act). Each bill ultimately advanced from the Committee along largely partisan lines – setting the stage for full House floor votes on the measures at a later date.
• MBA sent a letter supporting H.R. 976 (1071 Repeal Act), as introduced by House Small Business Committee Chair Roger Williams (R-TX), which would eliminate 1071 small business lending data reporting requirements entirely. The full markup proceeding can be watched here.
Why it matters: As explained more fully in a letter to the Committee, MBA supports the repeal of Section 1071 of the Dodd-Frank Act, after submitting comments during the CFPB’s Section 1071 small business lending reporting rulemaking that sought to exempt loans collateralized by commercial real estate from the resulting regulations.
Go deeper: Since 2023, MBA has urged the CFPB to narrow the rule’s scope, including an overall exemption for loans to finance income-producing investment properties in the final rule, but the Bureau failed to do so. It is well recognized that investment property lending is a category of lending distinct from small business lending.
What’s next: H.R. 976 will likely come to the House floor for consideration in the coming weeks. The House Financial Service Committee plans to hold another legislative markup prior to the end of the month.
For more information, please contact Madisyn Rhone at (202) 557- 2741 or Rachel Kelley at (202) 557- 2816.
Federal Regulators Intend to Rescind CRA Rules
The Federal Deposit Insurance Corporation (FDIC) recently issued a statement announcing the intent of the federal banking agencies (the FDIC, the Office of the Comptroller of the Currency, and the Federal Reserve Board) (the “Agencies) to rescind the October 2023 final rule on the Community Reinvestment Act (CRA) and reinstate the prior CRA framework.
Why it matters: While the October 2023 final rule included several MBA recommendations and requested clarifications, the rule was challenged by a group of banks as an “overreach” by the Agencies. According to the FDIC statement, the Agencies decided to rescind the rule because of the pending litigation, while continuing to work jointly on promoting a consistent regulatory approach on their implementation of current CRA rules.
Go deeper: While it is unclear whether the Agencies will issue a new proposal on modernizing the current CRA rules, the rescission could encourage more states to consider their own CRA rules for state-chartered institutions (and to extend them to IMBs and credit unions), resulting in a fragmentation of CRA standards.
• MBA continues to support a unified approach to CRA modernization, considering that current rules have not been updated in many years to reflect the many technology and business model changes that have occurred in the banking industry.
What’s next: The recission process will require an official publication of a notice to rescind, which would give stakeholders an opportunity to submit comments. MBA will work with its CRA working group to provide comments when the notice is published.
For more information, please contact Megan Booth at (202) 557-2740 or Fran Mordi at (202) 557- 2860.
Upcoming MBA Education Webinars on Critical Industry Issues
MBA Education continues to deliver timely commercial/multifamily and single-family programming that covers the spectrum of challenges, obstacles and solutions pertaining to our industry. Below, please see a list of upcoming and recent webinars – all complimentary to MBA members:
• Understanding Parametric Insurance: A Lender’s Guide to Maximizing Protection and Efficiency – April 10
• Uncovering Fraud in Commercial/Multifamily Lender-Placed Insurance – April 15
• Builder’s Risk Insurance: Analysis & Perspectives – April 17
• Basics of Commercial Loan Closing and Loan Documentation – May 1
• CMF Risk Management Series: Pre-Closing Risk Reduction Tactics – May 6
• Trends in Commercial Non-Bank Lending: Evolving Strategies & Creating Operational Advantages – May 7
MBA members can register for any of the above events and view recent webinar recordings by clicking here.
For more information, please contact David Upbin at (202) 557-2931.
