It eases mortgage loan data reporting requirements for the overwhelming majority of banks. It would add some safeguards for student loan borrowers and also require credit reporting companies to provide free credit monitoring services.
Republicans have argued the post-crisis regulations held down lending and economic growth. On Tuesday ahead of the vote, House Speaker Paul Ryan promoted the bill as a boon for community banks — though it boosts medium-sized and regional institutions, as well.
“This is a bill for the small banks that are the financial anchors of our communities. … It addresses some of Dodd Frank’s biggest burdens to ease the regulatory costs on these small banks — costs which are ultimately transferred on to consumers,” the Wisconsin Republican said.
House Republicans only coalesced behind the Senate version of the bill when leaders agreed to take up separate legislation sought by House Financial Services Committee Chairman Jeb Hensarling, R-Texas. Hensarling, a longtime opponent of the Dodd-Frank reforms, seeks a more drastic rollback.
In the Senate, lawmakers on the left flank such as Sen. Bernie Sanders, I-Vt., and Sen. Elizabeth Warren, D-Mass., opposed the measure and argued it could open taxpayers to more liability if banks fail. House Minority Leader Nancy Pelosi also criticized it, arguing Tuesday that it “would open the doors to banks once again discriminating in how they lend to home buyers.”
When the Senate earlier passed the legislation by a 67-to-31 vote, 17 Democrats joined with Republicans to approve it. Some Democrats in smaller or more rural states reliant on smaller banks cheered the legislation and said it removed a burden on those lenders.
This story is developing. Please check back for updates.