Congress passed the Economic Growth, Regulatory Relief, and Consumer Protection Act, which seeks to overhaul portions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and provides regulatory relief to smaller financial institutions. Some of the major deposit changes proposed in the bill include increasing the threshold from $50 billion in assets to $250 billion in assets so that financial institutions with less than $250 billion in assets would no longer be subject to stricter regulatory requirements. The bill also exempts financial institutions with less than $10 billion in assets from certain regulatory oversight entirely.

This bill also addresses the treatment of acquisition, development, and construction (ADC) loans characterized as high volatility commercial real estate (HVCRE) exposures. The bill clarifies the current definition of “HVCRE exposure,” which potentially covers ADC loans that do not merit the higher 150% risk weight required for HVCRE exposures under the capital rules, by creating a narrower “HVCRE ADC loan” definition. Under this bill, a loan must meet both definitions in order to be subject to the higher capital requirements. Lastly, the bill simplifies the existing capital contribution exemption that a 15% minimum capital contribution must remain in a project.

The bill has been signed by President Trump.

Click here to read the Bill.