Committee Approves Financial CHOICE Act
September 13, 2016
Legislation to end bailouts for big banks, toughen penalties for wrongdoing on Wall Street, promote economic growth and provide needed regulatory relief for small community banks and credit unions passed the House Financial Services Committee 30-26 on Tuesday.
The legislation—the Financial CHOICE Act—also would structurally alter the Consumer Financial Protection Bureau (CFPB). The bill would turn the agency into the "Consumer Financial Opportunity Commission." Along with switching leadership to a five-member board and bringing the agency on budget, it would have a new mission of "protecting consumers by enforcing the law and promoting market competition."
Sections of the bill that are of interest to ALTA members have been highlighted in this summary. The bill includes the small business advisory board bill that ALTA lobbied on previously, the creation of an advisory opinion process and a repeal of the agency's authority over abusive conduct. The proposed bill also incorporates bills to make manufactured housing easier and the Mortgage Choice Act, which amends the Ability-to-Repay/Qualified Mortgage provision (Section 1412) in Dodd-Frank to exclude title and certain escrow charges if they are paid to an affiliate of the originator under the law's calculation for the three-percent cap for points and fees. Title fees paid to a non-affiliated title company are already exempt.
If you have any questions about the bill, email Justin Ailes, ALTA's vice president of government and regulatory affairs.
Contact ALTA at 202-296-3671 or [email protected].