House Financial Services Committee Advances Regulatory Oversight, Financial Innovation Legislation to Full House for Consideration

House Financial Services Committee Advances Regulatory Oversight, Financial Innovation Legislation to Full House for Consideration Washington, April 17, 2024 - Today, the House Financial Services Committee, led by Chairman Patrick McHenry (NC-10), reported13 pieces of legislation out of Committee to the full House for consideration. Included among the measures is a slate of Congressional Review Act (CRA) resolutions to nullify a series of gross regulatory oversteps on the part of Biden's regulators. The Committee also considered measures to preserve and promote innovation in financial services and correct provisions in existing law that are being exploited for uses other than their intended purposes.

More information on all 13 bills reported out of the Financial Services Committee can be found below including Member remarks in support of their legislation: H.R. 5535, the "Insurance Data Protection Act," offered by Rep. Scott Fitzgerald (WI-05) eliminates the ability of the Federal Insurance Office (FIO) and the Office of Financial Research (OFR) to subpoena data directly from insurance companies. Instead, the bill requires FIO and OFR to work collaboratively with state insurance commissioners to obtain such information. Watch Rep. Fitzgerald's remarks in support of H.R. 5535 here.

H.R. 802, the "Respect State Housing Laws Act," offered by Rep. Barry Loudermilk (GA-11), corrects a drafting error in the CARES Act, which some trial lawyers have falsely claimed created a permanent 30-day federal eviction notice requirement.

Watch Rep. Loudermilk's remarks in support of H.R. 802 here.

H.R. 7437, the "Fostering the Use of Technology to Uphold Regulatory Effectiveness in Supervision (FUTURES) Act," offered by Rep. Erin Houchin (IN-09), requires the Federal Reserve, FDIC, OCC, CFPB, and NCUA to assess the challenges and risks resulting from their outdated supervisory technologies and internal procurement practices. The agencies would be required to jointly submit a report to Congress, and every five years thereafter, detailing their findings.

Watch Rep. Houchin's remarks in support of H.R. 7437 here.

H.R. 7440, the "Financial Services Innovation Act of 2024," as amended, offered by Chairman McHenry, establishes Financial Services Innovation Offices within each financial regulator and a federal sandbox for innovative financial products and services. Each FSIO will assess burdensome agency regulations that hinder innovation, as well as evaluate and approve alternative compliance agreements for entities wishing to offer innovative products and services.

Watch Chairman McHenry's remarks in support of H.R. 7440 here.

H.R. 7428, the "Earned Wage Access Consumer Protection Act," offered by Rep. Bryan Steil (WI-01), creates a transparent regulatory framework for earned wage access (EWA) products that ensures consumers are not assessed mandatory or hidden fees while also mandating numerous disclosures. Additionally, this bill sets requirements for EWA providers to establish dispute resolution procedures and certain notification requirements.

Watch Rep. Steil's remarks in support of H.R. 7428 here.

H.J. Res. 127, "a resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Securities and Exchange Commission relating to the 'Enhancement and Standardization of Climate-Related Disclosures for Investors,'" introduced by Rep. Bill Huizenga (MI-04), nullifies the Securities and Exchange Commission's (SEC's) disastrous climate disclosure rule, which exceeds the agency's authority, threatens our economy, weakens our capital markets, and would overwhelm investors with non-economic information.

Watch Rep. Huizenga's remarks in support of H.J. Res. 127 here.

H.J. Res. 122, "a resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Consumer Financial Protection Bureau relating to credit card penalty fees (Regulation Z)," introduced by Rep. Andy Barr (KY-06), nullifies the Consumer Financial Protection Bureau's (CFPB) credit card late fee rule which will harm consumers by shifting costs to responsible consumers who pay on time in the form of higher annual fees and higher interest rates and removes incentives for timely payments.

Watch Rep. Barr's remarks in support of H.J. Res. 122 here.

H.J. Res. 120, "a resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Financial Stability Oversight Council (FSOC) relating to 'Guidance on Non-Bank Financial Company Determinations,'" offered by Rep. French Hill (AR-02), overturns the Biden Administration's guidance on the nonbank designation process through the Financial Stability Oversight Council. This guidance represents another attempt by FSOC to become a roving regulator, ignoring the actual emerging risks that pose threats to our financial stability.

Watch Rep. Hill's remarks in support of H.J. Res. 120 here.

H.J. Res. 125, H.J. Res. 126, and H.J. Res. 124, introduced by Rep. Fitzgerald, Rep. Houchin, and Rep Byron Donalds (FL-19) rescinds Biden's banking regulators' climate risk management principles for large financial institutions at the Board of Governors of the Federal Reserve (Fed), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) respectively. These resolutions build on Republicans' work to stop the Biden Administration from forcing a progressive climate policy agenda through financial regulation.

Watch Rep. Donalds' remarks in support of H.J. Res. 124 here.

H.R. 4206, "Bank Safety Act of 2023," offered by Rep. Brad Sherman (CA-32), requires bank holding companies, and banks without a holding company, with total consolidated assets over $100 billion to include certain net gains and losses in their regulatory capital calculations. The bill would authorize the Federal banking agencies to further define AOCI through the rulemaking process and would require the Federal banking agencies to phase-in the inclusion of AOCI, such that it is fully phased-in by July 1, 2028.

H.R. 4116, the "Systemic Risk Authority Transparency Act," offered by Rep. Al Green (TX-09), increases transparency from the federal banking agencies and the Treasury Secretary when they invoke the systemic risk exception to the Federal Deposit Insurance Act's least-cost resolution mandate for resolving failed banks. The GAO would also be required to issue a report to Congress on the use of the systemic risk exception.

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