- Key insight: The House passed a bipartisan housing bill that bundles community banking provisions — including expanded limited-scope exam eligibility, new bank formation rules, and changes to brokered deposit and least-cost resolution frameworks — with measures to boost housing supply.
- What's at stake: The Senate already passed its own housing package without those banking riders, and key Democrats, including Elizabeth Warren, D-Mass., signaling opposition to add-ons, arguing the deregulatory riders shouldn't be tied to housing relief.
- Forward look: Reconciling the two versions will require negotiation, with some Senate Democrats expressing support for the underlying banking policies but reluctance to package them with housing legislation.
WASHINGTON — A bill that includes a number of bank-favored provisions faces a more uncertain future in the Senate, even after it
The House bill, known as the Housing for the 21st Century Act, aims to increase the supply of housing by streamlining state and local regulations and making it easier for builders to access funding. But the House added a number of bank-favored bipartisan riders, like one that lets banks with less than $6 billion in assets qualify for a limited scope bank examination, and another aimed at making it easier for new banks to form. The bill also makes changes to
The ROAD to Housing Act, cosponsored by Sens. Tim Scott, R-S.C., and Elizabeth Warren, D-Mass. — the top Republican and Democrat on the Senate Banking Committee, respectively — is substantially similar,
But that version didn't include the community banking provisions, which means that the two chambers will need to reconcile those differences if they want either version of the bill to pass.
Warren has already opposed the revised package.
"I'm glad to see the House move forward on housing proposals, but House Republicans should not hold housing relief hostage to push forward several bank deregulatory bills that will make our community banks more fragile while harming consumers, small businesses, and economic growth. Americans need relief from the housing crisis now," she said in a statement on Monday evening.
Other Senate Banking Democratic lawmakers don't seem keen to wrap up the reciprocal deposit and other provisions in the housing package, even if they support the community banking policies.
"Reciprocal deposits play an important role in promoting stability and ensuring community and regional banks can keep capital working where it belongs — in their local communities," said a spokesperson for Sen. Mark Warner, D-Va. Warner is a primary cosponsor of the brokered deposit bill.
"Still, tackling the housing shortage will take a broader, comprehensive approach. Senators are continuing discussions about how to reconcile the Housing for the 21st Century Act with the ROAD to Housing to lower housing costs and deliver real results for the American people," the spokesperson concluded.
The office of Sen. Catherine Cortez Masto, D-Nev., said that she supports the Senate version of the housing package.
"She would like to see the House of Representatives pass the ROAD to Housing Act. Cortez Masto is also working to introduce a Senate version of the Community Bank Deposit Access Act, which is included in the House of Representatives' housing package."
