HFS Committee Markup
House Financial Services Committee
Committee Markup
Tuesday, July 28, 2015
Key Topics & Takeaways
- Approval: The Committee passed all 14 bills considered.
- RAISE Act: Rep. McHenry (R-N.C.) introduced an amendment in the nature of a substitute to H.R. 1839, which would allow private companies to raise primary capital by opening up secondary markets, add a requirement for sellers to obtain specified information from the insurer, include a bad actor disclosure provision, and expand on other provisions.
- Fed Oversight Reform: Rep. Huizenga (R-Mich.) introduced H.R. 3189, which would increase the accountability and transparency of the Fed by limiting blackout periods and opening the rulemaking process. He stated that the bill would require the Fed to adopt a strategy-based guideline approach to monetary policy rather than an ad hoc process, as well as reform the Fed’s emergency lending powers.
Bills Considered
- H.R. 766, the “Financial Institution Customer Protection Act of 2015”
- H.R. 1210, the “Portfolio Lending and Mortgage Access Act”
- H.R. 1317, To amend the Commodity Exchange Act and the Securities Exchange Act of 1934 to specify how clearing requirements apply to certain affiliate transactions, and for other purposes.
- H.R. 1553, the “Small Bank Exam Cycle Reform Act of 2015”
- H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act”
- H.R. 1839, the “Reforming Access for Investments in Startup Enterprises Act of 2015”
-
- An Amendment in the Nature of a Substitute expected to be offered by Mr. McHenry and Ms. Waters
- H.R. 1941, the “Financial Institutions Examination Fairness and Reform Act”
- H.R. 2091, the “Child Support Assistance Act of 2015”
- H.R. 2243, the “Equity in Government Compensation Act of 2015”
- H.R. 2643, the “State Licensing Efficiency Act of 2015”
- H.R. 2912, the “Centennial Monetary Commission Act of 2015”
- H.R. 3032, the “Securities and Exchange Commission Reporting Modernization Act”
- H.R. 3189, the “Fed Oversight Reform and Modernization Act of 2015”
- H.R. 3192, the “Homebuyers Assistance Act”
H.R. 766, the “Financial Institution Customer Protection Act of 2015”
Rep. Blaine Luetkemeyer (R-Mo.) introduced his bill to prohibit a federal banking agencies from suggesting, requesting or ordering a financial institution to terminate a banking relationship unless it has an additional reason beyond reputational risk. Chairman Jeb Hensarling (R-Texas) and Rep. Randy Neugebauer (R-Texas) voiced their support for the bill.
Amendment Offered by Rep. Perlmutter
Rep. Ed Perlmuter (D-Co.) introduced an amendment that would prohibit federal banking agencies from penalizing institutions for providing financial services to a marijuana-related legitimate business. Luetkemeyer and Hensarling opposed the amendment, which was rejected by the Committee by voice vote.
Final Vote
H.R. 766 was adopted by the Committee in a 35-19 vote.
H.R. 1210, the “Portfolio Lending and Mortgage Access Act”
Rep. Andy Barr (R-Ky.) introduced his bill to establish a “safe harbor” exempting banks from the Consumer Financial Protection Bureau’s (CFPB’s) qualified mortgage requirements if the bank holds the loan in its own portfolio. Neugebauer and Hensarling voiced their support for the bill.
Amendment Offered by Rep. Waters
Ranking Member Maxine Waters (D-Calif.) introduced an amendment that would exclude high-cost mortgages and other products from qualifying for the safe harbor. The amendment was rejected by the Committee in a 21-34 vote.
Final Vote
H.R. 1210 was adopted by the Committee in a 38-18 vote.
H.R. 1317, To amend the Commodity Exchange Act and the Securities Exchange Act of 1934 to specify how clearing requirements apply to certain affiliate transactions, and for other purposes.
Rep. Gwen Moore (D-Wis.) introduced her bill and offered an amendment that makes provisions in the bill consistent with the Commodity Futures Trading Commission’s (CFTC’s) no action relief that meets the goals of end users and addresses the concerns of regulators and consumer groups. Hensarling voiced his support for the bill.
Final Vote
H.R. 1317 was adopted by the Committee in a 57-0 vote.
H.R. 1553, the “Small Bank Exam Cycle Reform Act of 2015”
Rep. Scott Tipton (R-Colo.) introduced his bill to make banks subject to a longer regulatory exam cycle. Reps. William Lacy Clay (D-Mo.), Barr and Luetkemeyer voiced their support for the bill.
Final Vote
H.R. 1553 was adopted by the Committee in a 58-0 vote.
H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act”
Rep. Frank Guinta (R-N.H.) introduced his bill that would provide clarity, fairness and due process to policies developed by the CFPB. There was bipartisan support for the bill, to include Reps. Roger Williams (R-Texas), David Scott (D-Ga.), French Hill (R-Ark.) and Tom Emmer (R-Minn.). Waters voiced her opposition to the bill.
Final Vote
H.R. 1737 was adopted by the Committee in a 47-10 vote.
H.R. 1839, the “Reforming Access for Investments in Startup Enterprises Act of 2015”
Rep. Patrick McHenry (R-N.C.) offered an Amendment in the Nature of a Substitute. The amendment would allow private companies to raise primary capital by opening up secondary markets, add a requirement for sellers to obtain specified information from the insurer, include a bad actor disclosure provision, and expand on other provisions. Waters and Hensarling both voiced support for the bill.
Final Vote
H.R. 1839 was adopted by the Committee in a 58-0 vote.
H.R. 1941, the “Financial Institutions Examination Fairness and Reform Act”
Rep. Lynn Westmoreland (R-Ga.) introduced his bill that would require regulatory institutions provide a final examination report to financial institutions within 60 days. Maloney offered an amendment that she then withdrew. Barr voiced his support and Waters opposed the bill.
Final Vote
H.R. 1941 was adopted by the Committee in a 45-13 vote.
H.R. 2091, the “Child Support Assistance Act of 2015”
Rep. Bruce Poliquin (R-Maine) introduced his bill to remove the 10-day waiting period for a consumer in response to a request for employment data by the head of a state or local child support enforcement agency if the requester states the report is needed for a child support order. Reps. Ann Wagner (R-Mo.), Keith Ellison (D-Minn.) and Hensarling voiced their support for the bill. Waters voiced opposition to the bill.
Final Vote
H.R. 2091 was adopted by the Committee in a 56-2 vote.
H.R. 2243, the “Equity in Government Compensation Act of 2015”
Rep. Ed Royce (R-Calif.) introduced his bill to reverse the Federal Housing Finance Agency’s (FHFA’s) decision to approve increased salaries for executives of the government-sponsored enterprises (GSEs). Poliquin and Waters voiced their support for the bill.
Final Vote
H.R. 2243 was adopted by the Committee in a 57-1 vote.
H.R. 2643, the “State Licensing Efficiency Act of 2015”
Rep. Roger Williams (R-Texas) introduced his bill that would expand states’ abilities to access criminal history information related to financial service providers required to undergo criminal background checks. Waters, Moore and Hensarling voiced their support for the bill.
Final Vote
H.R. 2643 was adopted by the Committee in a 57-0 vote.
H.R. 2912, the “Centennial Monetary Commission Act of 2015”
Rep. Mick Mulvaney (R-S.C.) introduced the bill he co-sponsored that would establish a commission to examine monetary policy in the U.S., evaluate alternative monetary regimes, and recommend courses for future monetary policy. Waters and Perlmutter opposed the bill while Hensarling and Rep. Bill Huizenga (R-Mich.) voiced their support.
Final Vote
H.R. 2912 was adopted by the Committee in a 35-22 vote.
H.R. 3032, the “Securities and Exchange Commission Reporting Modernization Act”
Rep. Kyrsten Sinema (D-Ariz.) introduced her bill to repeal certain reporting requirements of the Securities and Exchange Commission (SEC), facilitate capital formation and ensure that financial markets “work for everyone.” Hurt voiced his support for the bill.
Final Vote
H.R. 3032 was adopted by the Committee in a 58-0 vote.
H.R. 3189, the “Fed Oversight Reform and Modernization Act of 2015”
Huizenga introduced his bill that would increase the accountability and transparency of the Fed by limiting blackout periods and opening the rulemaking process. He continued that it would require the Fed to adopt a strategy-based guideline approach to monetary policy rather than an ad hoc process. Huizenga stated that the legislation would also reform the Fed’s emergency lending powers. Reps. Marlin Stutzman (R-Ind.) and Scott Garrett (R-N.J.) voiced support for the bill. Moore, Waters and Carolyn Maloney (R-N.Y.) opposed the bill. Rep. Peter King (R-N.Y.) urged Huizenga to remove Section 4 from the bill.
Manager’s Amendment Offered by Rep. Huizenga
Huizenga provided a manager’s amendment that would build in the flexibility that the Fed chairman would only have to testify before Congress if requested by the House Financial Services or Banking Committee, and clarify the calculation of the minimum interest rate that applies to emergency lending. The amendment was approved by the Committee by voice vote.
Amendment #1 Offered by Rep. Heck
Rep. Denny Heck (D-Wash.) provided an amendment that would make changes to the Fed’s monthly report on industrial production and capacity utilization, and require that the Fed consider the role of the Export-Import bank. Maloney and Waters voiced their support, and Hensarling and Huizenga agreed to accept the amendment. The amendment was approved by the Committee by voice vote.
Amendment #2 Offered by Rep. Heck
Heck offered a second amendment that would allow the Federal Open Market Committee (FOMC) to suspend the Taylor Rule framework when it declares current conditions have diverged from the Fed’s long term goals. The amendment was withdrawn.
Amendment Offered by Rep. Waters
Waters offered an amendment that would expand the criteria for regional Federal Reserve Bank boards of directors to include “traditionally underserved communities and populations.” Hensarling and Huizenga agreed to accept the amendment. The amendment was approved by the Committee by voice vote.
Final Vote
H.R. 3189 was adopted by the Committee in a 33-25 vote.
H.R. 3192, the “Homebuyers Assistance Act”
Rep. Hill introduced his bill that would provide a temporary safe harbor from enforcement of a new disclosure rule by the CFPB in truth in lending until February 1, 2016. Neugebauer and Hensarling voiced their support for the bill while Waters opposed.
Final Vote
H.R. 3192 was adopted by the Committee in a 45-13 vote.
For the Committee Memorandum and summaries of all the proposed legislation, please clickhere.
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House Financial Services Committee
Committee Markup
Tuesday, July 28, 2015
Key Topics & Takeaways
- Approval: The Committee passed all 14 bills considered.
- RAISE Act: Rep. McHenry (R-N.C.) introduced an amendment in the nature of a substitute to H.R. 1839, which would allow private companies to raise primary capital by opening up secondary markets, add a requirement for sellers to obtain specified information from the insurer, include a bad actor disclosure provision, and expand on other provisions.
- Fed Oversight Reform: Rep. Huizenga (R-Mich.) introduced H.R. 3189, which would increase the accountability and transparency of the Fed by limiting blackout periods and opening the rulemaking process. He stated that the bill would require the Fed to adopt a strategy-based guideline approach to monetary policy rather than an ad hoc process, as well as reform the Fed’s emergency lending powers.
Bills Considered
- H.R. 766, the “Financial Institution Customer Protection Act of 2015”
- H.R. 1210, the “Portfolio Lending and Mortgage Access Act”
- H.R. 1317, To amend the Commodity Exchange Act and the Securities Exchange Act of 1934 to specify how clearing requirements apply to certain affiliate transactions, and for other purposes.
- H.R. 1553, the “Small Bank Exam Cycle Reform Act of 2015”
- H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act”
- H.R. 1839, the “Reforming Access for Investments in Startup Enterprises Act of 2015”
-
- An Amendment in the Nature of a Substitute expected to be offered by Mr. McHenry and Ms. Waters
- H.R. 1941, the “Financial Institutions Examination Fairness and Reform Act”
- H.R. 2091, the “Child Support Assistance Act of 2015”
- H.R. 2243, the “Equity in Government Compensation Act of 2015”
- H.R. 2643, the “State Licensing Efficiency Act of 2015”
- H.R. 2912, the “Centennial Monetary Commission Act of 2015”
- H.R. 3032, the “Securities and Exchange Commission Reporting Modernization Act”
- H.R. 3189, the “Fed Oversight Reform and Modernization Act of 2015”
- H.R. 3192, the “Homebuyers Assistance Act”
H.R. 766, the “Financial Institution Customer Protection Act of 2015”
Rep. Blaine Luetkemeyer (R-Mo.) introduced his bill to prohibit a federal banking agencies from suggesting, requesting or ordering a financial institution to terminate a banking relationship unless it has an additional reason beyond reputational risk. Chairman Jeb Hensarling (R-Texas) and Rep. Randy Neugebauer (R-Texas) voiced their support for the bill.
Amendment Offered by Rep. Perlmutter
Rep. Ed Perlmuter (D-Co.) introduced an amendment that would prohibit federal banking agencies from penalizing institutions for providing financial services to a marijuana-related legitimate business. Luetkemeyer and Hensarling opposed the amendment, which was rejected by the Committee by voice vote.
Final Vote
H.R. 766 was adopted by the Committee in a 35-19 vote.
H.R. 1210, the “Portfolio Lending and Mortgage Access Act”
Rep. Andy Barr (R-Ky.) introduced his bill to establish a “safe harbor” exempting banks from the Consumer Financial Protection Bureau’s (CFPB’s) qualified mortgage requirements if the bank holds the loan in its own portfolio. Neugebauer and Hensarling voiced their support for the bill.
Amendment Offered by Rep. Waters
Ranking Member Maxine Waters (D-Calif.) introduced an amendment that would exclude high-cost mortgages and other products from qualifying for the safe harbor. The amendment was rejected by the Committee in a 21-34 vote.
Final Vote
H.R. 1210 was adopted by the Committee in a 38-18 vote.
H.R. 1317, To amend the Commodity Exchange Act and the Securities Exchange Act of 1934 to specify how clearing requirements apply to certain affiliate transactions, and for other purposes.
Rep. Gwen Moore (D-Wis.) introduced her bill and offered an amendment that makes provisions in the bill consistent with the Commodity Futures Trading Commission’s (CFTC’s) no action relief that meets the goals of end users and addresses the concerns of regulators and consumer groups. Hensarling voiced his support for the bill.
Final Vote
H.R. 1317 was adopted by the Committee in a 57-0 vote.
H.R. 1553, the “Small Bank Exam Cycle Reform Act of 2015”
Rep. Scott Tipton (R-Colo.) introduced his bill to make banks subject to a longer regulatory exam cycle. Reps. William Lacy Clay (D-Mo.), Barr and Luetkemeyer voiced their support for the bill.
Final Vote
H.R. 1553 was adopted by the Committee in a 58-0 vote.
H.R. 1737, the “Reforming CFPB Indirect Auto Financing Guidance Act”
Rep. Frank Guinta (R-N.H.) introduced his bill that would provide clarity, fairness and due process to policies developed by the CFPB. There was bipartisan support for the bill, to include Reps. Roger Williams (R-Texas), David Scott (D-Ga.), French Hill (R-Ark.) and Tom Emmer (R-Minn.). Waters voiced her opposition to the bill.
Final Vote
H.R. 1737 was adopted by the Committee in a 47-10 vote.
H.R. 1839, the “Reforming Access for Investments in Startup Enterprises Act of 2015”
Rep. Patrick McHenry (R-N.C.) offered an Amendment in the Nature of a Substitute. The amendment would allow private companies to raise primary capital by opening up secondary markets, add a requirement for sellers to obtain specified information from the insurer, include a bad actor disclosure provision, and expand on other provisions. Waters and Hensarling both voiced support for the bill.
Final Vote
H.R. 1839 was adopted by the Committee in a 58-0 vote.
H.R. 1941, the “Financial Institutions Examination Fairness and Reform Act”
Rep. Lynn Westmoreland (R-Ga.) introduced his bill that would require regulatory institutions provide a final examination report to financial institutions within 60 days. Maloney offered an amendment that she then withdrew. Barr voiced his support and Waters opposed the bill.
Final Vote
H.R. 1941 was adopted by the Committee in a 45-13 vote.
H.R. 2091, the “Child Support Assistance Act of 2015”
Rep. Bruce Poliquin (R-Maine) introduced his bill to remove the 10-day waiting period for a consumer in response to a request for employment data by the head of a state or local child support enforcement agency if the requester states the report is needed for a child support order. Reps. Ann Wagner (R-Mo.), Keith Ellison (D-Minn.) and Hensarling voiced their support for the bill. Waters voiced opposition to the bill.
Final Vote
H.R. 2091 was adopted by the Committee in a 56-2 vote.
H.R. 2243, the “Equity in Government Compensation Act of 2015”
Rep. Ed Royce (R-Calif.) introduced his bill to reverse the Federal Housing Finance Agency’s (FHFA’s) decision to approve increased salaries for executives of the government-sponsored enterprises (GSEs). Poliquin and Waters voiced their support for the bill.
Final Vote
H.R. 2243 was adopted by the Committee in a 57-1 vote.
H.R. 2643, the “State Licensing Efficiency Act of 2015”
Rep. Roger Williams (R-Texas) introduced his bill that would expand states’ abilities to access criminal history information related to financial service providers required to undergo criminal background checks. Waters, Moore and Hensarling voiced their support for the bill.
Final Vote
H.R. 2643 was adopted by the Committee in a 57-0 vote.
H.R. 2912, the “Centennial Monetary Commission Act of 2015”
Rep. Mick Mulvaney (R-S.C.) introduced the bill he co-sponsored that would establish a commission to examine monetary policy in the U.S., evaluate alternative monetary regimes, and recommend courses for future monetary policy. Waters and Perlmutter opposed the bill while Hensarling and Rep. Bill Huizenga (R-Mich.) voiced their support.
Final Vote
H.R. 2912 was adopted by the Committee in a 35-22 vote.
H.R. 3032, the “Securities and Exchange Commission Reporting Modernization Act”
Rep. Kyrsten Sinema (D-Ariz.) introduced her bill to repeal certain reporting requirements of the Securities and Exchange Commission (SEC), facilitate capital formation and ensure that financial markets “work for everyone.” Hurt voiced his support for the bill.
Final Vote
H.R. 3032 was adopted by the Committee in a 58-0 vote.
H.R. 3189, the “Fed Oversight Reform and Modernization Act of 2015”
Huizenga introduced his bill that would increase the accountability and transparency of the Fed by limiting blackout periods and opening the rulemaking process. He continued that it would require the Fed to adopt a strategy-based guideline approach to monetary policy rather than an ad hoc process. Huizenga stated that the legislation would also reform the Fed’s emergency lending powers. Reps. Marlin Stutzman (R-Ind.) and Scott Garrett (R-N.J.) voiced support for the bill. Moore, Waters and Carolyn Maloney (R-N.Y.) opposed the bill. Rep. Peter King (R-N.Y.) urged Huizenga to remove Section 4 from the bill.
Manager’s Amendment Offered by Rep. Huizenga
Huizenga provided a manager’s amendment that would build in the flexibility that the Fed chairman would only have to testify before Congress if requested by the House Financial Services or Banking Committee, and clarify the calculation of the minimum interest rate that applies to emergency lending. The amendment was approved by the Committee by voice vote.
Amendment #1 Offered by Rep. Heck
Rep. Denny Heck (D-Wash.) provided an amendment that would make changes to the Fed’s monthly report on industrial production and capacity utilization, and require that the Fed consider the role of the Export-Import bank. Maloney and Waters voiced their support, and Hensarling and Huizenga agreed to accept the amendment. The amendment was approved by the Committee by voice vote.
Amendment #2 Offered by Rep. Heck
Heck offered a second amendment that would allow the Federal Open Market Committee (FOMC) to suspend the Taylor Rule framework when it declares current conditions have diverged from the Fed’s long term goals. The amendment was withdrawn.
Amendment Offered by Rep. Waters
Waters offered an amendment that would expand the criteria for regional Federal Reserve Bank boards of directors to include “traditionally underserved communities and populations.” Hensarling and Huizenga agreed to accept the amendment. The amendment was approved by the Committee by voice vote.
Final Vote
H.R. 3189 was adopted by the Committee in a 33-25 vote.
H.R. 3192, the “Homebuyers Assistance Act”
Rep. Hill introduced his bill that would provide a temporary safe harbor from enforcement of a new disclosure rule by the CFPB in truth in lending until February 1, 2016. Neugebauer and Hensarling voiced their support for the bill while Waters opposed.
Final Vote
H.R. 3192 was adopted by the Committee in a 45-13 vote.
For the Committee Memorandum and summaries of all the proposed legislation, please clickhere.