
MBA Letter Urges Support of Lender Examinations Fairness Bill
As the Senate continues debate of a broad regulatory reform bill, the Mortgage Bankers Association sent a letter to the House in support of legislation that would improve how lenders are examined by federal agencies.
H.R. 4545, the Financial Institution Examination Fairness and Reform Act (https://www.congress.gov/bill/115th-congress/house-bill/4545), would address a number of important concerns about the manner in which lenders are examined, including improving timeliness of examinations; ensuring examiners adhere to their agencies’ standards; and creating a new, more independent examination appeals process.
The legislation was re-introduced by Rep. Scott, Tipton, R-Colo., late last year and passed through the House Financial Services Committee and was amended to include non-depositories that are regulated by the Consumer Financial Protection Bureau.
“We especially appreciate the changes to the bill that would amend the definition of ‘financial institution’ to ensure that non-depository lenders will be subject to the same standards and protections as depositories under this legislation,” said MBA Senior Vice President of Legislative and Political Affairs Bill Killmer. “This modest step–for purposes of sections 1012, 1013, and 1014 of the Financial Institutions Examination Council Act of 1978–to include ‘a non-depository covered person subject to the supervision of the Consumer Financial Protection Bureau,’ will provide a fairer examination environment for all institutions across the financial services spectrum.”
The bill is expected to come for a vote on the House floor this week.