The U.S. House of Representatives passed two bills that seek to reduce regulations for financial services companies.
H.R. 3978, sponsored by Rep. French Hill (R-AR), is a legislative package of 5 bills. That package includes the TRID Improvement Act (H.R. 3978), which requires the Consumer Financial Protection Bureau (CFPB) to allow for the calculation of the discounted rate title insurance companies may provide to consumers when they purchase a lenders and owners title insurance policy simultaneously. It also includes the Protection of Source Code Act (H.R. 3948), which requires the Securities and Exchange Commission (SEC) to first issue a subpoena before making a person furnish to the SEC algorithmic trading source code or similar intellectual property.
Further, Hill’s package of bills includes the Fostering Innovation Act of 2017 (H.R. 1645), which extends the exemption available to emerging growth companies (EGCs); the National Securities Exchange Regulatory Parity Act (H.R. 4546), which says the state “blue sky” exemption shall be available for all securities that qualify for trading in the national market system; and the S.A.F.E. Mortgage Licensing Act (H.R. 2948), which provides a temporary license for loan originators transitioning between employers.
This legislative package passed 271-145 in the House.
The House also passed the Protecting Consumers’ Access to Credit Act of 2017 (H.R. 3299), which says the interest rate on a loan originated by a bank remains valid if the loan is sold, assigned, or transferred to a non-bank third party. It passed 245-171.
“These bills will help cut at least some of the red tape that places such a disproportionate burden on Main Street businesses and financial entities and limits consumer access to credit. These bills are practical, they are strongly bipartisan, and they are needed,” Financial Services Committee Chairman Rep. Jeb Hensarling (R-TX) said. “I applaud the sponsors of each of these commonsense regulatory relief bills for their hard work in bringing these bills to the floor.”