The Housing for the 21st Century Act (H.R. 6644) a bipartisan housing package advanced by the House Financial Services Committee and which has now cleared the House floor by a 390-9 vote, contains numerous provisions relevant to banks. Of particular note, the bill includes the text of a bill that Rep. Tim Moore filed last year – the Tailored Regulatory Updates for Supervisory Testing Act of 2025 (TRUST Act) – a bill to raise the consolidated asset threshold for well-managed community banks that qualify for longer examination cycles. Notable provisions include:

• Raising the total asset threshold from $3 billion to $6 billion under which institutions qualify for a limited-scope examination directly after an on-site, full-scope exam. The bill also would raise the total asset threshold under which institutions qualify for an 18-month exam cycle from $3 billion to $6 billion.
• Requiring federal banking agencies to streamline and simplify the new bank application process. It would also allow applicants to request a designated caseworker within the regulatory agency to assist with the process.
• The creation of a pilot two-year phase-in period of federal capital requirements for new banks.
• Requiring the Government Accountability Office and appropriate federal banking regulators to issue reports detailing the causes of bank failures, regulatory actions and any management or supervisory shortcomings, within certain specified timeframes after the FDIC invokes the systemic risk exception.
• The establishment of a mentor-prot?g? program within the Treasury Department pairing large financial institutions with other depository institutions, with the goal of enhancing their capacity to serve customers and potentially act as financial agents.
• Requiring federal regulators to jointly study ways to improve the growth, capital adequacy, and profitability of rural depository institutions.
• Increasing the Public Welfare Investment cap from 15% to 20% for banks regulated by the OCC and the Federal Reserve.

The legislative information for the bill has not yet been updated by the Library of Congress, but we have included here a link to a section-by-section analysis of the bill released by House Financial Services Committee Chairman French Hill. Every member of the North Carolina delegation who was present voted in favor of the bill.

Author: sdbrownlow

Student of Design