Dodd-Frank Act Revisions

CFPB, Mortgage Lending, Fair lending, TAILOR Act & Durbin Amendment

Consumer Financial Protection Bureau

  • Absent an effort to totally abolish the CFPB, Congress should consider returning the enforcement of the 18 consumer protection and fair lending laws to the prudential banking regulators.
  • Rather than having almost unlimited funding from the Federal Reserve, the CFPB should be subject to Congressional appropriations and increased oversight.
  • The CFPB's single director should be replaced with a three-person board.

Mortgage Lending

  • The QM and RID regulations for mortgage lending amount to more than 1,900 pages of meaningless regulation to determine if a borrower can repay a loan. They should be repealed.
  • The high-cost mortgage language and the balloon payment prohibitions should also be repealed. They have resulted in the loss of mortgage credit for rural Texans.
  • At a minimum, Congress should act to allow mortgages held in portfolio to be QM compliant.

Fair Lending

  • The Equal Credit Opportunity Act and the Fair Housing Act should be amended to require actual intention to discriminate rather than the disparate impact standard.
  • The Dodd-Frank Act calls for extensive record keeping, similar to HMDA, for small business lending. This will add even more compliance costs for small banks for an area already covered by the Equal Credit Opportunity Act. This provision should be repealed.

Taking Account of Institutions with Low Operation Risk (TAILOR) Act

  • TBA supports HR 116, Scott Tipton's legislation that would require federal regulators to tailor regulatory actions based on the size, risk profile and other factors for each institution rather than a one-size-fits-all approach.

Repeal the Durbin Amendment

  • At the behest of the big box retailers, the Durbin amendment was added to the Dodd-Frank Act.
  • Customers have not seen any of the promised cost-savings that were supposed to flow from the Durbin Amendment.
  • The amendment amounts to federal price controls over the interchange fees for debit and credit cards and should be repealed.