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News

Use of CRA to Undo Regulations

April 30, 2024

On April 17,
the House Financial Services Committee voted to pass, along party lines, Congressional Review Act (CRA) resolutions that would nullify regulations from the Consumer Financial Protection Bureau, the Securities and Exchange Commission, and other financial regulators.

What it is. The CRA allows a new Congress to nullify rules issued within the last 60 legislative days of the prior Congress. The exact calendar for this period is somewhat of a confusing calculus, but will likely start in May or June 2024 for the current Congress.

Since CRA resolutions are subject to presidential vetoes, we see more of this activity in potential presidential transition years.

Why it matters: As noted by American Banker, the use of the CRA is:

“An accelerating trend, and not specific to bank regulation. But in the last few weeks, it's become particularly noticeable in that arena.”

The application of the CRA does not only undo these rules, but also prevents regulators from issuing similar ones, thereby reining in regulatory influence in certain areas.

What they’re saying: Employing the CRA to attempt to nullify rules can also be a messaging tool. According to American Banker:

“The CRA resolutions make it easier for Republicans to communicate where a future Republican administration would want to focus its energy. It also forces Democratic lawmakers, particularly those in vulnerable seats in the 2024 election season, into potentially politically unpopular votes.”

 

While presidential transition years often see an increase in CRA resolutions, current activity has eclipsed typical activity.

The bottom line: As reported in several CREFC Policy and Capital Markets Briefings, uncertainty regarding financial regulation has grown while the courts weigh in on an increasing number of final regulations. The heightened use of the CRA will likely add to that uncertainty.

CREFC will keep membership apprised of any significant regulatory developments, including related litigation or CRA application. Please contact Sairah Burki (sburki@crefc.org) with any questions.
 

Contact 

Sairah Burki
Managing Director, Head of Regulatory
Affairs & Sustainability
703.201.4294
sburki@crefc.org

nullify regulations
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2023 CRE Finance Council. All rights reserved.
Use of CRA to Undo Regulations
April 30, 2024
On April 17, the House Financial Services Committee voted to pass, along party lines, Congressional Review Act (CRA) resolutions.

News

Upcoming Congressional Hearings 

April 30, 2024

This week, a number of hearings are being held by the Financial Services and Tax Committees. As covered above, a House Oversight subcommittee also will have a hearing on commercial real estate.

Tuesday, April 30

Wednesday, May 1

Thursday, May 2

Contact David McCarthy (dmccarthy@crefc.org) with questions.

Contact 

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2023 CRE Finance Council. All rights reserved.
Upcoming Congressional Hearings
April 30, 2024
This week, a number of hearings are being held by the Financial Services and Tax Committees.

News

Joint Trade Letter on Housing Legislation

April 30, 2024

On Monday, April 29, CREFC joined 20 housing and real estate trade organizations in a letter to Congress urging action on legislation to create and support affordable housing development. Click here for the letter.

Why it matters: Many Americans are unable to rent or buy homes due to increased housing costs. These rising costs are driven by a lack of supply created by barriers to development that increasingly make it extremely challenging, particularly a price affordable to low- and middle-class families.

Go deeper: The letter highlights a number of bills focused on increasing housing supply, both affordable and market rate, through direct investment, public-private partnerships, lowering regulatory burdens, and tax incentives.

What’s next: CREFC and the signatories will highlight the legislation to members of Congress and the Biden Administration. While the outlook for enactment of any legislation ahead of the November election is slim, sustained advocacy can help bills advance in the lame-duck session or a future Congress.

Contact David McCarthy (dmccarthy@crefc.org) with questions.

Contact 

David McCarthy
Managing Director, Chief Lobbyist, 
Head of Legislative Affairs
202.448.0855
dmccarthy@crefc.org
The information provided herein is general in nature and for educational purposes only. CRE Finance Council makes no representations as to the accuracy, completeness, timeliness, validity, usefulness, or suitability of the information provided. The information should not be relied upon or interpreted as legal, financial, tax, accounting, investment, commercial or other advice, and CRE Finance Council disclaims all liability for any such reliance. © 2023 CRE Finance Council. All rights reserved.
Joint Trade Letter on Housing Legislation
April 30, 2024
On Monday, April 29, CREFC joined 20 housing and real estate trade organizations in a letter to Congress urging action on legislation to create and support affordable housing development.

We are lenders, investors & servicers.​

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