HR3230-119

What This Bill Does

The Financial Institution Regulatory Tailoring Enhancement Act raises asset thresholds that trigger several Federal bank regulatory regimes. It amends Consumer Financial Protection Act section 1025 so CFPB supervision of larger insured depository institutions and credit unions applies at $50 billion instead of $10 billion, and the reported version updates section 1026 in the parallel smaller-institution framework. It raises the Bank Holding Company Act Volcker Rule-related threshold in section 13(h)(1)(B)(i) from $10 billion to $50 billion. It raises the Truth in Lending Act qualified-mortgage or ability-to-repay threshold cross-reference from $10 billion to $50 billion. It also raises a tailoring threshold in the Economic Growth, Regulatory Relief, and Consumer Protection Act from $10 billion to $50 billion.

Who Benefits and How

Mid-size banks with assets between $10 billion and $50 billion benefit because they can fall below regulatory thresholds that previously treated them like larger institutions. Credit unions in the $10 billion to $50 billion range benefit from reduced CFPB-supervision exposure. Regional bank holding companies benefit from a higher threshold in the Bank Holding Company Act provision. Mortgage compliance departments at covered banks benefit from a higher Truth in Lending Act threshold. Bank shareholders may benefit if compliance costs fall for institutions that move below the raised thresholds.

Who Bears the Burden and How

The Consumer Financial Protection Bureau loses direct supervisory reach over some institutions between $10 billion and $50 billion. Consumer borrowers may face higher risk if fewer mid-size institutions receive large-bank-style CFPB supervision. Federal banking regulators must adjust supervisory coordination and threshold calculations. State bank supervisors may carry more practical oversight responsibility for institutions no longer in the same Federal threshold category. Consumer advocacy organizations bear a policy burden because the bill narrows several regulatory triggers.

Key Provisions

• Amends the Consumer Financial Protection Act to replace $10 billion thresholds with $50 billion thresholds.
• Amends the Bank Holding Company Act Volcker-related threshold from $10 billion to $50 billion.
• Amends the Truth in Lending Act threshold from $10 billion to $50 billion.
• Amends an Economic Growth, Regulatory Relief, and Consumer Protection Act tailoring threshold from $10 billion to $50 billion.
• Modifies CFPB supervisory coverage for institutions between $10 billion and $50 billion.