May 24 2018

WASHINGTON, D.C. – Today, Senator Thom Tillis (R-NC), a member of the Senate Committee on Banking, Housing, and Urban Affairs, applauded the President signing the Economic Growth, Regulatory Relief, and Consumer Protection Act into law. The bipartisan legislation is the result of work from Congressional members on both sides of the aisle to a reach consensus on how to provide relief for smaller financial institutions from Dodd-Frank regulations that were meant for the biggest, most complex institutions, while also ensuring a safe financial system.
Following the passage of Dodd-Frank, many financial institutions all across the county were unable to handle the one-size-fits-all model of regulations imposed on them, no matter their size. As a result, many of these institutions were forced to close or consolidate, greatly reducing the access to capital for consumers and small business owners. For example, in March of 2008, North Carolina had 102 banks headquartered in the state. Due to accelerated consolidation after the passage of the Dodd-Frank Act, the number of North Carolina-headquartered banks fell to 50 as of March 2018.
“Since 2008, North Carolina’s regional and community banks have been decimated by the burdensome regulatory standards set by Dodd-Frank, resulting in a more than 50 percent decline in banks across the state and restricted resources for consumers and small business owners” said Senator Tillis. “The Economic Growth, Regulatory Relief and Consumer Protection Act is bipartisan legislation that has been years in the making after hearing of the negative effects of Dodd-Frank all across the country. This legislation is a positive step in right-sizing the regulatory burden to allow banks to focus on consumers and small-business owners, not on red-tape from the federal government.”
“North Carolina bankers are grateful to Senator Tillis for the leadership role he played in advancing regulatory reform through Senate Bill 2155 as a co-sponsor of the bill and an advocate for the role a strong a vibrant banking sector plays in serving the needs of consumers, small businesses and communities throughout North Carolina,” said Peter Gwaltney, President & CEO of the North Carolina Bankers Association. “S. 2155 contains many benefits for consumers, including a very important provision, sponsored by Senator Tillis, that protects veterans and their families from predatory mortgage lending practices.  Military families and veterans deserve the best we can give them in return for their service to our country.”
“Credit unions and the millions of Carolinians they serve are grateful for the leadership of Sen. Thom Tillis in passing common-sense regulatory reform with S.2155, the Economic Growth, Regulatory Relief and Consumer Protection Act,” said John Radebaugh, President and CEO of Carolinas Credit Union League. “This is regulatory “right-sizing” of overreaching measures that are intended for Wall Street, yet weigh heavily on Main Street and credit unions, in which compliance has drained an average of twenty percent from operating budgets. S.2155 strikes the right balance, maintaining necessary provisions for Wall Street and the functions of the CFPB and other regulators. Thanks to Sen. Tillis and all who supported it, credit unions on Main Street can return more time and energy to the needs of our citizens and communities.”
Included in the legislation is the Protecting Veterans from Predatory Lending Act of 2018, bipartisan legislation Tillis introduced with Senator Elizabeth Warren (D-MA), which would protect veterans from targeted predatory home loan practices by requiring lenders to demonstrate a material benefit to consumers when refinancing their mortgage.
To learn more about the legislation, click here.