OTHER BANKING NEWS
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Senate Banking Committee Advances Bill to Accelerate Housing Construction
The Senate Banking Committee has unanimously voted to advance bipartisan legislation to boost housing supply by removing regulatory barriers to building homes, expanding rental assistance and allocating funds for infrastructure that supports new housing.
The ROAD to Housing Act of 2025, sponsored by committee Chairman Tim Scott (R-S.C.) and Ranking Member Elizabeth Warren (D-Mass.), incorporates legislation from members across the committee, according to a joint statement. The 315-page bill includes language to reward communities that build more housing supply, ease environmental review of new construction, rethink regulations to hamper additional lending for small-dollar mortgages, and expand tenant assistance and protections.
“This is a collaborative effort that includes the work of my colleagues across the committee, and I look forward to advancing these solutions to the full Senate,” Scott said.
“With this historic bipartisan bill, we are taking a critical first step to bring down families’ number one monthly expense–housing costs,” Warren added.
Among its many provisions, the proposed bill would:
- Increase the Public Welfare Investment cap for the Office of the Comptroller of the Currency and the Federal Reserve from 15% to 20%, which would enhance banks’ capacity to make investments in affordable housing.
- Allow the Department of Housing and Urban Development to give more weight to grant applicants that are located in, or primarily serve, designated opportunity zones to support housing preservation and construction.
- Require the Federal Housing Administration to assess barriers to FHA-insured lending for modular housing and direct the HUD secretary to modify the financing draw schedule to encourage modular housing construction.
- Direct HUD to develop best practice frameworks for zoning and land-use policies.
- Require the Consumer Financial Protection Bureau to issue a report to Congress studying the effect of various factors of loan originator compensation on the availability of small-dollar mortgage loans and assess the barriers they pose to the availability of such mortgages.
- Require the CFPB and Federal Housing Finance Agency to evaluate the effects of existing regulations that limit the points and fees that lenders can charge on qualified mortgage loans, which vary by loan limit. Based on such evaluation, the CFPB would be directed to make any necessary regulatory changes to points and fees to help encourage additional lending for small-dollar mortgages.
- Permanently authorize the Community Development Block Grant–Disaster Recovery and establish the Office of Disaster Management and Resiliency within HUD to administer the program.
To read more, visit: https://www.banking.senate.gov/imo/media/doc/road_to_housing_act_of_2025_section_by_section.pdf
NDBA Joins Letter to Seek Federal Study on Credit Unions’ Tax Status
The Treasury Department should conduct a study of the $2.37 trillion credit union system to determine whether its current activities align with its longstanding tax-exempt status, 52 state bankers associations, including NDBA, said in a joint letter to the department.
Credit unions have become increasingly complex since the passage of the Federal Credit Union Act in 1934, which exempts the institutions from many taxes as long as they serve individuals of modest means. However, their recent activities call into question whether they should still qualify for that tax exemption, with 450 credit unions now holding more than $1 billion in assets, the associations said. Last year, credit unions announced 22 bank acquisitions totaling nearly $12 billion in assets, and one federal credit union bought the multimillion-dollar naming rights to the Washington Commanders’ NFL stadium.
“Seemingly at odds with their mission and structure, these credit unions acquire commercial banks, offer nationwide membership and sponsor professional sports teams,” they said. “They even draw tax-exempt income from business entities for IT, insurance and other services. Their growth suggests that they are operating like banks without the same requirements, including federal corporate income tax obligations.”
Along with a study on their tax-exempt status, the Treasury Department should provide recommendations about whether Congress should introduce legislation that would require all credit unions to pay federal income tax and compel federal credit unions to pay unrelated business income tax like other nonprofits, the associations said.
To read the letter, visit: https://www.aba.com/-/media/documents/letters-to-congress-and-regulators/jointltrkies20250729.pdf
More Than 59 Million People Covered by Health Savings Accounts In 2024
Health savings accounts helped cover health care expenses for more than 59.3 million Americans in 2024, according to a new survey by Devenir and the American Bankers Association’s HSA Council.
The survey found there were 39.3 million HSAs by the end of last year. Millennial account holders accounted for a significant segment of HSA growth, with approximately 30% of HSAs held by individuals in their 30s.
At the same time, account holders ages 55 and older had accumulated over $63 billion in their accounts at the end of 2024, a 21% increase from the previous year. The average HSA balance for the age group reached $6,564.
HSAs also exhibited broad socioeconomic adoption, with 64% of health savings account holders living in zip codes with median household incomes of less than $100,000.
“Devenir’s 2024 findings show that health savings account adoption remains strong, especially for working Americans with nearly seven out of 10 households that use HSAs to pay for current and future healthcare expenses earning less than $100,000 per year,” said Kevin McKechnie, executive director of the HSA Council. “Our hope is that Congress will allow older Americans on Medicare, veterans and other populations access to the only health insurance product that helps you save for retirement while taking care of you as you work. Almost 60 million Americans use HSAs now and we believe that number will only continue to grow in the years ahead.”
To view the survey, visit: https://www.devenir.com/2024-devenir-hsa-council-demographic-survey-findings/
FHFA Proposes to Repeal Fair Lending Rule
The Federal Housing Finance Agency is proposing to repeal a 2024 final rule that codified many of its existing practices and programs regarding fair housing and fair lending oversight of its regulated entities: Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
In a notice published in the Federal Register, FHFA said it was seeking public comment on repealing the Fair Lending, Fair Housing, and Equitable Housing Finance Plans regulation. The agency cited President Trump’s executive order in February directing federal agencies to repeal “unnecessary” regulations as a reason for walking back the final rule.
Among other things, the 2024 rule made changes to Fannie’s and Freddie’s Equitable Housing Finance Plans to promote greater accountability; added oversight of unfair or deceptive acts or practices to FHFA’s fair housing and fair lending oversight programs; required additional certification of compliance by all the entities; and established more precise standards related to fair housing, fair lending and equitable housing principles for the entities’ boards. The rule also created a new requirement for FHLBs to annually report on any actions they voluntarily take to address barriers to sustainable housing opportunities for underserved communities.
Comments on the proposed repeal must be submitted to FHFA by Sept. 26.
To read more, visit: https://www.federalregister.gov/documents/2025/07/28/2025-14183/fair-lending-fair-housing-and-equitable-housing-finance-plans