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REVISED FINANCIAL
CHOICE ACT ON
HORIZON
A revised version of the Financial
CHOICE Act is in the works, according
to House Financial Services Chairman
and bill author Jeb Hensarling, (R-Texas).
Hensarling announced at the American
Bankers Association Government Relations
Summit in March that a revised version of
the act would be released "soon," but gave no
further details on how soon.
Hensarling first introduced the Financial
CHOICE act last summer, in response to the
2010 Dodd-Frank Act. e president's team
has already indicated support of the Financial
CHOICE Act, which, among other things,
would modify aspects of Dodd-Frank. e
CHOICE Act would help to reform the
Consumer Financial Protection Bureau,
which, according to author and investment
banker Chris Whalen, "has been especially
harmful to the mortgage industry and has
caused the cost of servicing a mortgage to rise
several fold since 2008."
Hensarling is confident that his legislation
will win a vote in the House; however, he
fears that it will face a tougher road through
the Senate. Republican Senate Banking
Committee Chairman Mike Crapo, (R-Idaho),
faces the challenge of getting at least eight
Democrats on board for large portions of the
legislation, according to Hensarling.
"Right now, I fear that a number of
Democratic senators are intimidated by their
base," Hensarling said.
Hensarling has not specified when he
will release the new timeline, although he
did state that the presidential administration
views bank deregulation efforts as a priority.
It is difficult right now, however, to determine
when Congress will be able to fit financial
regulation into its schedule, as other acts,
such as the Affordable Care Act, and Senate
confirmations currently dominate Congress.
Despite the opposition, Whalen noted that
now is the right time for Financial CHOICE
to pass.
"ere are a number of other issues that
may catch the attention of the new president
next year, but an amended version of the
Financial CHOICE Act has the highest
probability of success in 2017," Whalen
said. "Needless to say, the financial services
industry including banks, insurers, and
nonbank financial institutions will be very
supportive of passage of some form of the
Financial CHOICE Act."
