Reintroduce Bipartisan, Bicameral Legislation to Help Federal Savings Associations Expand Bill Would Eliminate Time-Consuming, Costly Hurdles Impeding Small Financial Institutions’ Ability to Help Families, Businesses Grow
BigNews.Biz - Mar 11,2017 - Heitkamp, Moran, Rothfus, Himes Reintroduce Bipartisan, Bicameral Legislation to Help Federal Savings Associations Expand
Bill Would Eliminate Time-Consuming, Costly Hurdles Impeding Small Financial Institutions’ Ability to Help Families, Businesses Grow
WASHINGTON, D.C. – U.S. Senators Heidi Heitkamp (D-ND) and Jerry Moran (R-KS) as well as Congressmen Keith Rothfus (R-PA) and Jim Himes (D-CT) introduced bipartisan, bicameral legislation to streamline federal rules to help small, local federal savings associations (FSAs), or thrifts, expand their ability to offer loans to more families and businesses without going through a costly charter conversion process.
Currently, local FSAs – like community banks – must go through a time consuming and financially burdensome charter conversion process if they want to expand their ability to offer more loans to more families and businesses. The arduous process of charter conversion has limited the ability of small financial institutions that are trying to meet existing demand for financial services from their customers. By eliminating that time-consuming and financially burdensome conversion process, Heitkamp, Moran, Himes and Rothfus’ bipartisan, bicameral Federal Savings Association (FSA) Charter Flexibility Act would change that – leveling the playing field for small, local FSAs by treating them as national banks if they wish to expand their business.
“Small, local financial institutions are a cornerstone of North Dakota communities – helping families purchase homes to grow their families, and enabling businesses get the start they need to thrive. That’s why eliminating hurdles that deter their ability to offer more loans in their communities is just good commonsense,” said Heitkamp. “We ought to be encouraging local financial institutions to help our communities grow, not placing roadblocks that are too expensive or cumbersome to overcome. My bipartisan bill with Senator Moran would do that by cutting unnecessary red tape FSAs face if they want to expand their ability to offer loans in our hometowns just as national banks do. By leveling the playing field for our small financial institutions, we can help our families, businesses, and local towns thrive.”
“Kansas households and businesses require flexible, healthy and responsible financial institutions in order to create and maintain their workforce, yet Kansas bankers have been hesitant to lend as they await the next burdensome regulation coming out of Washington,” said Moran. “Congress must create an environment that encourages economic growth, and I look forward to working with my colleagues to increase credit options for consumers.”
“This bill ensures that institutions that have played a vital role in their communities for generations will be able to grow and evolve to serve their customers for years to come,” said Rothfus. “Small business owners, entrepreneurs, and families rely on their services to conduct their everyday business, which is why this proposal has bipartisan support in both the House and Senate and the backing of the OCC.”
“Federal savings associations already play an integral role in helping many Americans buy their homes,” said Himes. “Allowing them to expand the way they serve their communities will give Americans the option of using an already trusted institution for commercial or consumer