Small banks across the US are gearing up to take advantage of new freedoms to pile into mortgages and other areas of lending as the biggest rollback of banking regulation since the financial crisis moves closer to approval by Congress.
Republican aides said the House of Representatives would vote next Tuesday on a bill aimed at giving small banks relief from post-crisis reforms that had driven them out of parts of the market. The bill has already been approved by the Senate, meaning it has advanced further than any other banking legislation since 2010.
Alice Frazier, chief executive of Bank of Charles Town of West Virginia, said it could unlock parts of the $9.3tn U.S. mortgage market by relieving banks like hers of burdensome data collection requirements, while allowing them to hold more home loans on their balance sheets.
“This gives us more opportunity [to] offer mortgages to folks we know,” said Frazier, whose bank has $430m in assets.
Read more in the Milwaukee Business Journal.