House Committee Approves Regulatory Reform Bill

The House Financial Services Committee, largely on party lines, approved a bill that would repeal large sections of the Dodd-Frank Act and restructure the Consumer Financial Protection Bureau.  

The committee approved H.R. 5983, the Financial CHOICE Act of 2016 (, by a 30-26 vote. One Republican, Rep. Bruce Poliquin, R-Maine, voted against the bill.  

The bill, sponsored by Financial Services Committee Chairman Jeb Hensarling, R-Texas, would end “too big to fail” provisions under Dodd-Frank; restructure Consumer Financial Protection Bureau leadership with a five-person commission (replacing the current single director); repeal specific command-and-control powers conferred on federal regulators by Dodd-Frank; repeal the “Volcker Rule;” and impose enhanced penalties on Wall Street firms for financial fraud and deception. The bill also encompasses a number of other Republican-led reform efforts, including those addressing manufactured housing and ability to repay provisions.  

Ahead of the vote, the Mortgage Bankers Association sent a letter outlining its views on the bill. The letter noted support of many elements of H.R. 5983; its comments focused primarily on capital requirements, commercial/multifamily real estate, key changes to the structure of the CFPB and regulatory relief measures previously considered by the Financial Services Committee.  

The bill now goes to the House floor; a vote is not yet scheduled. MBA Senior Vice President of Legislative and Political Affairs Bill Killmer said no companion bill exists in the Senate, which makes it unlikely that a final bill would reach President Obama’s desk this year.