Treasury Issues Sweeping Report on Regulatory Reform

Filed in Codes and Regulations by on June 13, 2017 0 Comments

In response to President Trump’s executive order calling for the examination of the U.S. financial regulatory system, the Treasury Department today issued its first in a series of reports focusing on financial regulatory reform designed to provide much-needed relief to small businesses, community banks and other financial institutions.

NAHB supported this executive action by President Trump as the nation’s housing recovery and economic growth continues to be challenged by regulatory barriers preventing too many home builders from receiving loans and restricting mortgage financing to creditworthy borrowers.

NAHB met with Treasury officials as they were working on the report and emphasized the overly restrictive implementation of commercial real estate (CRE) lending guidance that has deterred the availability of acquisition, development and construction financing to the home building industry.

NAHB is pleased to note that our recommendation that banking regulators take a more accommodative approach to CRE lending concentrations has been included in the report. Treasury states the regulators “should consider alternatives to assessing concentration risk to allow banks engaged in CRE lending to maximize access to credit for small businesses.”

In a press release announcing the report, Treasury said its 150-page report focused on the following areas:

  • Regulations need to be better tailored, more efficient, and effective.
  • Community financial institutions – banks and credit unions – are critically important to serve many Americans.
  • Capital, liquidity and leverage rules can be simplified to increase the flow of credit.
  • Banks must be globally competitive.
  • Improving market liquidity is critical for the U.S. economy.
  • The Consumer Financial Protection Bureau must be reformed.
  • Congress should review the organization and mandates of the independent banking regulators to improve accountability.

For more information, contact Becky Froass  at 800-368-5242 x8529.

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