#2023-22, September 29, 2023

U.S. Senate Banking Committee Advances SAFER Act to U.S. Senate

On Wednesday, the Senate Banking Committee voted 14-9 to advance the SAFER Act out of Committee to the full Senate for consideration. Senator Elizabeth Warren (D-MA) voted in favor of advancing the legislation.

As reported last week, the Secure and Fair Enforcement Regulation (SAFER) Act, according to the bill’s summary, ensures all businesses, including state-sanctioned cannabis businesses “have access to deposit accounts, insurance and other financial services” and “creates common-sense standards for banks and credit unions to maintain customer relationships and to expand access to deposit accounts for underbanked groups.” To read a summary of the SAFER Act, click here.

To read more about the U.S. Banking Committee vote, click here.

We will update you with more information as we can.

MBA, ABA Call on U.S. Congress to Reject Credit Card Competition Act

Last week, the Association, the ABA and 48 other state banking associations submitted a letter to Congressional leaders urging them to reject the Credit Card Competition Act as a standalone bill and as any amendment to appropriations bills and resolutions. To read the joint letter, click here.

As mentioned last week, the Association also contacted Senator Elizabeth Warren (D-MA) and Senator Ed Markey (D-MA) thanking them for not co-sponsoring the Credit Card Competition Act (CCCA) and reiterated our strong objection to its inclusion as an amendment to any bill this session.

Supporters of the CCCA have recently moved to attach the bill to the Military Construction, Veterans Affairs and Related Agencies Appropriations Act. As you may recall, a move to amend the National Defense Authorization Act (NDAA) and include the CCCA language, was rejected by the U.S. Senate this past July, following objections from the Association and the ABA.

To read our past letter to Senator Warren and Senator Markey, click here.

We will keep you posted as developments arise.

Federal Court Issues Nationwide Injunction on Consumer Protection Financial Bureau’s (CPFB) Section 1071

Last week, a federal judge granted an injunction delaying the compliance dates for the CPFB Section 1071 final rule while the Supreme Court hears a separate case weighing the constitutionality of the CFPB’s funding structure. 

The Association continues to closely monitor this issue and will provide members with updates as they develop. In the meantime, please do not hesitate to reach out to us if you have any questions.

Fannie Mae Grants Temporary Relief to Maintain Seller Eligibility Requirements

Fannie Mae recently announced temporary relief for sellers, which allows Fannie Mae sellers to sell at least one (1) loan for calendar year 2023.

The temporary relief eases the Loan Sales requirement that mandates at least 12 loans per calendar year in order to maintain approval as a Fannie Mae seller. According to Fannie Mae, beginning on January 1, 2025 (for calendar year 2024) sellers must meet the minimum requirement of twelve loans per calendar year to Fannie Mae in order maintain approval.

The Association is pleased to see our work alongside ABA lead to this determination by Fannie Mae. While we appreciate the short-term relief for community banks, we will continue to pursue a long-term solution and will update you on such progress as we can.