Today, the United States House of Representatives endorsed a major bank deregulation bill, forwarding the bill to President Trump's Resolute desk. Politico reports that the bill includes provisions for lenders of all sizes, great and small, and focuses primarily on freedom from regulatory bondage and oversight as well as relaxing mortgage rules, particularly those surrounding mortgage lending to high-risk prospects. The bill is bipartisan in nature, though primarily Republican in nature, and originated in the Senate before being sent to the House for further debate and discussion.
"This is the most pro-growth banking bill in a generation," said House Financial Services Chairman Jeb Hensarling (R-Texas), who helped lay the groundwork for the legislation. [Politico]
Rep. Hensarling elaborated that in his estimation, the bill was not drastic enough – a true compromise between the minority Democrats and the Republican caucus. Years of negotiation between GOP Senators and a small group of dissident Democratic Senators who were willing to shirk the party philosophy on the matter in favor of their own ideas came to fruition with the passage of Tuesday's bill to President Trump's desk, where it will almost certainly be signed into law.
The relaxation of constrictive regulation on lenders, particularly institutions focused primarily on small and medium-sized loans, would be a palpable change from the status quo engendered by the Obama-era imposition of Dodd-Frank in response to the financial crisis of 2008. The more contentious issue surrounding these smaller institutions that would come into play with the presumed passage of the bill would be the additional protections against mortgage disclosure requirements intended to combat discrimination. Historically, mortgage disclosure discrimination took place against people of various races, religions, or other non-applicable, non-financial criteria.
Consumers also get a few modest but notable wins if the legislation goes through: borrowers would be eligible for free credit freezes (an action taken to prevent potential thieves from stealing your identity via credit reports), active-duty servicemen would score complimentary credit-monitoring, and novel protections for veterans who decide to refinance their mortgage would be enacted to ensure home security.
Top Democrats are not happy with the bill, nor the congressional party members on their own side who helped usher it along. House Minority Leader Nancy Pelosi, flanked by ally Maxine Waters, decried the bill as "another Republican giveaway to big banks."
Should the bill be passed by Trump's pen, his supporters will widely hail the move as a victory – another promise made and, and least partially, kept.