2018 Federal Legislative Agenda

Federal Issues

Following are issues that the Texas Bankers Association is watching closely at the federal level.

S. 2155:

  • Texas bankers are grateful for the passage of S. 2155, which is a first step in bringing much-needed regulatory reform to the banking industry. However, we believe further reforms are warranted.
  • We would like to see legislation passed that would exempt lenders with $50 billion in assets or less from escrow requirements on Higher Priced Mortgage Loans (HPML) they hold in their portfolios.
  • TRID improvement legislation would also provide true relief for Texas communities banks, as there is banker uncertainty about liabilities under the TRID rules. Specifically, bankers need better guidance on the scope and effect of RESPA and TILA's liability provisions given the integration of the two sets of disclosures.

TBA Supports a National Data Breach Standard

  • The Gramm-Leach-Bliley Act (GLBA) requires banks to have a risk and governance-based approach to data security; we believe this is the path Congress should take in the consideration of a national breach standard. We would oppose any mandated technology solution or specific security because it would quickly become outdate.
  • We believe that anyone who keeps and uses sensitive consumer information should develop, implement and maintain reasonable administrative, technical and physical safeguards to protect sensitive personal information from unauthorized access and acquisition.
  • These safeguards must be appropriate to the size and complexity of the entity, which would make their implementation a scalable and tailored process.

FinCEN's Customer Due Diligence Rule Creates Compliance Confusion

  • FinCEN's Beneficial Ownership Rule went into effect May 11 and, despite having a two-year implementation window, questions still remain. The FAQs released by FinCEN leave many of these questions unanswered.
  • FinCEN has yet to publish new exam procedures to provide banks a compliance roadmap for the new Customer Due Diligence (CDD) Rule, which went into effect May 11.
  • Because of the additional costs and risks associated with the new CDD, smaller banks may determine some accounts are no longer economical. So, when the new required customer information isn't easily obtainable, banks may choose not to maintain certain account relationships.