WASHINGTON D.C. – The House of Representatives passed Congressman Scott Tipton’s (CO-03) bill to reduce the onerous regulatory compliance burdens on small community banks and credit unions. H.R. 1116, the Taking Account of Institutions with Low Operational Risk (TAILOR) Act would require financial oversight agencies to tailor regulations to better fit a bank or credit union’s risk profile and business model. The bill passed with a bipartisan vote of 247-169.

“Since the Dodd-Frank Act was enacted in 2010, banks and credit unions have been regulated under a one-size-fits-all approach, regardless of size or risk profile,” said Tipton. “The compliance costs imposed by these one-size-fits-all regulations have placed a heavy burden on smaller financial institutions, who have far fewer resources available for compliance than larger institutions. By requiring regulators to consider the cost of compliance on smaller institutions, the TAILOR Act will go a long way towards allowing small banks and credit unions to use their resources to better serve their customers, rather than on excessive compliance regulations. In turn, the TAILOR Act will help community financial institutions focus once again on generating economic growth and creating greater opportunities in their communities.”

“In Colorado, mortgages haven’t been made, loans to expand small businesses have been denied, retirees and recently employed workers have been turned away, and relationships between community bankers and their neighbors have been disregarded,” said Tipton. “The “one-size-fits-all” approach to regulating the financial services industry has resulted in decreased access to much-needed credit in communities across America, and it is time to bring this regulatory framework to an end.”

The TAILOR Act would do the following:

• Require the federal financial regulatory agencies to tailor any regulatory action to appropriately apply to banks and credit unions;
• Require the federal financial regulatory agencies to consider risk profile and business model of the institutions to determine the necessity, appropriateness, and impact of applying such regulatory action to those institutions;
• Require the federal financial regulatory agencies to individually report in person and testify in the House Committee on Financial Services and the Senate Banking Committee annually on the specific actions taken to tailor the agency’s regulatory actions as required by the bill;
• Require that within three years of the enactment, federal financial regulatory agencies review all regulations adopted over the seven years prior to February 2, 2017, and apply the requirements of this bill to such regulations.

Background:

• The TAILOR Act received support from a bipartisan group of 113 members of Congress in the 114th Congress.
• The bill has already passed the House of Representatives once as part of the Financial CHOICE Act of 2017, and it passed the Financial Services Committee twice in 2016 and 2017.
• In February 2018, Congressman Tipton discussed the TAILOR Act with the newly appointed Federal Reserve Chairman, Jerome Powell, and asked how he plans to help relieve small community banks and credit unions from burdensome, one-size-fits-all regulations.

Online banking act passes

Congressman Scott Tipton (CO-03) issued the following statement after the Senate passed the Economic Growth, Regulatory Relief, and Consumer Protections Act (S. 2155), which includes Tipton’s Making Online Banking Initiation Legal and Easy Act, otherwise known as the MOBILE Act (H.R. 1457):

“In rural areas, where it can be difficult to get to a physical bank branch, mobile banking has become a critical tool for Americans to save money securely, pay their bills on time, and better plan for their financial needs. Every family should have the tools they need to achieve financial prosperity, no matter where they choose to live. I welcome the inclusion the MOBILE Act in S. 2155, and I look forward to considering the entire legislative package in the House.”

H.R. 1457 would create a uniform regulatory standard, allowing consumers to authorize their bank to use their personal information on their driver’s license or identification card in order to open a bank account on a mobile device.

Moreover, this bill protects consumer privacy information and upholds state privacy laws by requiring a financial institution to delete all copies of the driver’s license after using them for the allowed purpose.