Bills advocated by the American Bankers Association (ABA) were introduced in the House and Senate this week to help federal savings associations to retain their thrift charters.
The legislative measures would provide a simple process for thrifts to elect to receive the lending powers — and compliance responsibilities — of national banks without changing their Home Owners Loan Act (HOLA) charters. They would also give thrifts more options to diversify their portfolios.
The bills were introduced in the House by Reps. Keith Rothfus (R-PA) and Jim Himes (D-CT), and in the Senate by Sens. Heidi Heitkamp (D-ND) and Jerry Moran (R-KS).
“These bills are the epitome of sensible regulatory relief,” ABA Executive Vice President Bob Davis said. “They will allow mutual and stock savings associations chartered under the Home Owners Loan Act to better serve the needs of their communities without having to go through lengthy and costly charter conversions.”
The proposal is a key part of ABA’s Blueprint for Growth. It is modeled on an approach championed by Comptroller of the Currency Thomas Curry when he was commissioner of banking in Massachusetts.
Davis said the Office of the Comptroller of the Currency is supportive of the concept behind the legislation. A similar bill cleared the House Financial Services Committee unanimously in the last Congress.
“ABA has long championed greater flexibility for HOLA-chartered institutions to adapt their business models to changing demographics and changing needs in their communities,” Davis said. “Federal saving associations have a long, proud history of being responsive to their communities’ needs, and this legislation will help them to enhance and continue that record.”