¶ Supporting of Deregulating Banks and Payday Lenders
Rep. Barr has voted for legislation to help payday and other high-cost lenders avoid state interest rate caps. Additionally, Barr has also introduced a wide array of pro-industry legislation, including major rollbacks of protections stemming from the 2008 financial crisis and “dangerous loopholes” in a rule that prevented banks from “gambling” with consumers’ funds.
¶ Rep. Barr Has Voted For Legislation Meant To Help Payday Lenders And Other High-Cost Lenders Avoid State Interest Rate Caps.
¶ Rep. Barr Voted For The Protecting Consumers’ Access To Credit Act, Legislation That Over 150 Organizations Urged Congress To Reject Because It Would Expand “Rent-A-Bank” Arrangements Which Allow High-Cost Lenders To Avoid State Interest Rate Caps.
July 2017: Rep. Barr Voted For H.R. 3299, The Protecting Consumers’ Access To Credit Act Of 2017, Which Passed The House With A Vote Of 245-171 In February 2018. [Congress.gov, accessed 01/10/23]
September 2017: The Center For Responsible Lending (CRL) And 150 Organizations Urged Congress To Reject H.R. 3299, The Protecting Consumers’ Access To Credit Act Of 2017, Arguing It Would Make It Easier For Predatory Lenders To “Use Rent-A Bank Arrangements To Ignore State Interest Rate Caps And Make High-Rate Loans.” “The Center for Responsible Lending (CRL), the National Consumer Law Center (NCLC), and 150 national and state organizations urge Members of Congress to reject S. 1642 and H.R. 3299, legislation that pose serious risks of enabling a vast expansion of predatory lending across the country. Specifically, the legislation makes it easier for payday lenders and other nonbanks to use rent-a bank arrangements to ignore state interest rate caps and make high-rate loans.” [Center for Responsible Lending, 09/11/17]
- CRL And The Other Organizations Noted The Legislation Could Undermine Interest Rate Caps In 15 States And The District Of Columbia That Save Consumers Over $2.2 Billion In Payday Loan Fees Per Year. “The potential costs and damage to consumers are significant, the groups warn. S. 1642 and H.R. 3299 could potentially expand short-term payday lending to the 15 states plus the District of Columbia whose state interest rate limits currently save borrowers over $2.2 billion annually in payday loan fees.” [Center for Responsible Lending, 09/11/17]
¶ Rep. Barr Has Introduced A Wide Array Of Pro-Industry Legislation, Including Two Bills Included In 2018’s Major Roll-Back Of Dodd-Frank Financial Protections And A Legislation Establishing “Dangerous Loopholes” In The Post-2008 Volcker Rule That Prevented Banks From “Gambling” With Consumers’ Funds.
¶ Rep. Barr Voted For And Praised S. 2155, The Economic Growth, Regulatory Relief, And Consumer Protection Act, A Bill To Weaken Dodd-Frank Financial Reforms “Designed To Tame Wall Street, Protect Consumers And Make Our Financial System Less Fragile"—The Bill Included Two Of Barr’s Bills To Roll Back Key Consumer Protections Against Predatory Lending.
May 2018: Rep. Barr Issued A Statement Celebrating The Passage Of S. 2155, The Economic Growth, Regulatory Relief, And Consumer Protection Act, Which Included Two Of Barr’s Bills: H.R. 2226, The Portfolio Lending And Mortgage Access Act, And H.R. 1699, The Preserving Access To Manufactured Housing Act. “Today, the House of Representatives passed S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, the most pro-growth regulatory relief legislation in a generation. This package includes two bills introduced by Congressman Andy Barr (KY-06) – H.R. 2226, the Portfolio Lending and Mortgage Access Act, and H.R. 1699, the Preserving Access to Manufactured Housing Act.” [Rep. Andy Barr, 05/22/18]
Barr Praised S. 2155 For Rolling Back Dodd-Frank Financial Reforms And Criticized “‘The Avalanche Of Red Tape Arising Out Of This Financial Control Law,’” Adding “‘We Must Build On Our Success To Provide Additional Relief From Burdensome Financial Regulations.’” “‘Since enactment of the 2,300-page Dodd-Frank Act, roughly one in five Kentucky credit unions and community banks have closed its doors,’ said Congressman Andy Barr. ‘The avalanche of red tape arising out of this financial control law has been a disaster for Kentucky consumers as they have been needlessly denied credit to purchase a home, start a business, or finance their American Dream. I am proud that over half of the provisions included in this bill originated from the House Financial Services Committee, including my Portfolio Lending and Mortgage Access Act and Preserving Access to Manufactured Housing Act. Now we must build on our success to provide additional relief from burdensome financial regulations and continue our work to unleash economic growth in our communities.’” [Rep. Andy Barr, 05/22/18]
S. 2155 Included Barr’s Portfolio Lending And Mortgage Access Act, Which Extended The “‘Qualified Mortgage’” Safe Harbor For Smaller Lenders, Including Banks And Credit Unions—Consumer Advocates Opposed The Bill For Creating A ““A Dangerously Broad Exemption For Depository Institutions From Predatory Lending Protections.” “The Portfolio Lending and Mortgage Access Act [...] H.R. 2226 will extend the ‘Qualified Mortgage’ legal safe harbor to small creditors, banks and credit unions, with total consolidated assets of $10 billion or less who originate and hold residential mortgage loans in portfolio, rather than selling or securitizing them, allowing those lenders to satisfy Dodd Frank’s ability-to-repay rule.” [Rep. Andy Barr, 05/22/18]
- Consumer Advocates Americans For Financial Reform Opposed The Bill Because It Created “A Dangerously Broad Exemption For Depository Institutions From Predatory Lending Protections” For Mortgage Borrowers. “H.R. 2226 creates a dangerously broad exemption for depository institutions from predatory lending protections afforded to residential mortgage borrowers.” [Americans for Financial Reform, 01/17/18]
S. 2155 Included Barr’s Preserving Access to Manufactured Housing Act, Which Protected Manufactured Home Retailers From Being Considered Mortgage Loan Originators—Over 50 Organizations Opposed The Bill Because It Exempted The Industry From Protection Against “Inappropriately High-Cost Loans.” “The Preserving Access to Manufactured Housing Act [...] The definitions of ‘mortgage originator’ and ‘loan originator,’ established by the Dodd-Frank Act, are based on traditional mortgage market roles that do not reflect the manufactured housing market. While businesses that sell manufactured homes do not originate loans to finance them, manufactured home retailers currently run the risk of being considered mortgage loan originators.” [Rep. Andy Barr, 05/22/18]
- Over 50 Organizations Opposed The Preserving Access To Manufactured Housing Act, Writing To Congress That It “Poses Significant Dangers For Consumers And Homebuyers By Exempting Manufactured Housing Lenders From Requirements That Protect Borrowers Against Inappropriately High-Cost Loans.” “Joint Letter: More than 50 Organizations Oppose ‘Preserving Access to Manufactured Housing Act’ [...] On behalf of the undersigned community organizations and public interest groups, we ask you to oppose H.R. 1699, the so-called Preserving Access to Manufactured Housing Act of 2017. This bill poses significant dangers for consumers and homebuyers by exempting manufactured housing lenders from requirements that protect borrowers against inappropriately high-cost loans.” [Americans for Financial Reform, 12/01/17]
May 2018: Rep. Barr Voted For Passage Of S. 2155, The Economic Growth, Regulatory Relief, and Consumer Protection Act, Which Became Law In May 2018. [Clerk of the U.S. House of Representatives, 05/22/18]
- S. 2155 Became Law On May 24, 2018. [Congress.gov, accessed 01/10/23]
S. 2155 Sought To “Considerably Weaken” Dodd-Frank Financial Reforms “Designed To Tame Wall Street, Protect Consumers And Make Our Financial System Less Fragile." "The bill, S. 2155, would considerably weaken the Dodd-Frank Wall Street Reform and Consumer Protection Act, the law President Barack Obama signed in 2010, which was designed to tame Wall Street, protect consumers and make our financial system less fragile." [CNN, 03/05/18]
The Bill Raised The Threshold For A Bank To Be Considered Systematically Important From $50 Billion To $250 Billion In Assets. “The bill’s most controversial provision would increase the threshold from $50 billion to $250 billion for a bank to be considered systemically important. These so-called 'too big to fail' banks must undergo mandatory Fed ‘stress tests’ every year, complete a 'living will' directing how they could be wound down safely if they failed, and face other stricter safety rules. Just about everyone seems to agree that $50 billion was too low a threshold, inundating banks that don’t really pose systemic risks and don’t really need living wills with heavy compliance costs and headaches. But many experts believe $250 billion is too high.” [Politico, 11/08/18]
The Bill Also Weakened “Anti-Discrimination Standards In Housing By Raising The Number Of Loans A Bank Can Make Before It’s Required To Report On The Issue.” “[Former Congressman Barney Frank] criticized a provision in the bill that he said weakens anti-discrimination standards in housing by raising the number of loans a bank can make before it’s required to report on the issue. Another provision that he singled out allows foreign megabanks, such as Deutsche Bank and HSBC, to put their American assets into a separate holding company to avoid US regulatory scrutiny.” [Vox, 03/14/18]
¶ March 2015: Rep. Barr Introduced The American Jobs and Community Revitalization Act Of 2015, “A Package Of Regulatory Reforms” That Barr Said Would Counter “‘New Federal Financial Regulations’”—The American Bankers Association Expressed Its Support For The Deregulatory Bill In Congressional Testimony.
March 2015: Rep. Barr Introduced H.R. 1389, The American Jobs and Community Revitalization Act Of 2015, Which Did Not Advance To A Vote In The Full House Of Representatives. [Congress.gov, 01/19/23]
Barr Issued A Press Release About The Bill, Calling It “A Package Of Regulatory Reforms” That Barr Said Would Address “‘New Federal Financial Regulations [...] Making It Harder For Kentuckians To Borrow Money.’” “Congressman Andy Barr (R-KY) today introduced H.R. 1389, the American Jobs and Community Revitalization Act, a package of regulatory reforms that would expand access to credit, create jobs, and expand opportunities especially in rural communities. ‘New federal financial regulations are making it harder for Kentuckians to borrow money to buy a home, purchase a car, or get a line of credit to start or expand a small business,’ said Congressman Barr. ‘The result has been devastating especially for rural communities.’” [Rep. Andy Barr, 03/17/15]
Barr Said The Bill Would “‘Require Federal Regulators To Review And Streamline Their Rules, End One-Size-Fits-All Regulations, And Allow Community Banks And Credit Unions To Do Their Jobs.’” “‘The reforms included in the American Jobs and Community Revitalization Act are a commonsense approach which will require federal regulators to review and streamline their rules, end one-size-fits-all regulations, and allow community banks and credit unions to do their jobs. This bill will create an environment in which small communities can overcome Washington’s red tape, encourage private sector investment, and provide needed jobs in rural America.’” [Rep. Andy Barr, 03/17/15]
June 2016: The American Bankers Association Testified Before The House Small Business Committee That It Supported Rep. Barr’s Bill, Stating It “Contains A Number Of Provisions That Will Reduce The Regulatory Requirements For America's Rural Hometown Banks.” “American Jobs and Community Revitalization Act of 2015 [...] ABA supports Rep. Andy Barr's (R-Ky.) American Jobs and Community Revitalization Act of 2015 legislation which contains a number of provisions that will reduce the regulatory requirements for America's rural hometown banks around the county in ways that make it easier for them to meet their customers' needs.” [U.S. House Committee on Small Business, 06/09/16]
¶ 2014: Rep. Barr Introduced A Bill To “Clarify” Certain Dodd-Frank Risk-Based Requirements And Mortgage Transaction Definitions That Was Opposed By Consumer Advocates For Containing “Deregulatory Measures” That Would “Reopen The Door To The Higher Fees Borrowers Faced In The Runup To The Mortgage Crisis.”
September 2014: Rep. Barr Introduced H.R. 5461, A Bill “To Clarify The Application Of Certain Leverage And Risk-Based Requirements Under The Dodd-Frank Wall Street Reform And Consumer Protection Act, To Improve Upon The Definitions Provided For Points And Fees In Connection With A Mortgage Transaction, And For Other Purposes.” [Congress.gov, accessed 01/19/23]
- H.R. 5461 Passed The House By A Vote Of 327-97. [Clerk of the U.S. House Of Representatives, 09/16/14]
Consumer Advocates, Americans For Financial Reform, Opposed H.R. 5461—The House Companion To A More Bipartisan Senate Version Of The Bill—For Containing “A Number Of Unrelated Deregulatory Measures” That Would “Reopen The Door To The Higher Fees Borrowers Faced In The Runup To The Mortgage Crisis.” “Insurance Capital Standards Act. HR 5461. Roll Call #502. [...] The original ‘Insurance Capital Standards Act,’ unanimously approved by the Senate on June 3, 2014, was a carefully negotiated bipartisan compromise with input from both industry and consumer groups. The House version, by contrast, includes a number of unrelated deregulatory measures. One, the so-called ‘Mortgage Choice Act,’ would amend the definition of “points and fees” to allow mortgage lenders to evade the cost caps of the new Qualified Mortgage rules mandated by the Dodd-Frank Act and issued by the Consumer Financial Protection Bureau. This would effectively reopen the door to the higher fees borrowers faced in the runup to the mortgage crisis. AFR opposed. [...] Introduced by Representative Andy Barr (R-Ky.), HR 5461 passed the House by a vote of 327 to 92 on Sept. 16, 2014.” [Americans for Financial Reform, May 2015]
¶ March 2014: Rep. Barr Introduced The Restoring Proven Financing for American Employers Act, Which He Claimed Would “Ensure That Washington Bureaucrats Don’t Needlessly And Arbitrarily Restrict Access To Credit”—Consumer Advocates Opposed The Bill For Proposing “Dangerous Loopholes In Volcker Rule Risk Protections For No Clear Public Purpose.”
March 2014: Rep. Barr Introduced H.R. 4167, The Restoring Proven Financing for American Employers Act. [Congress.gov, accessed 01/19/23]
- April 2014: H.R. 4167 Passed The House By A Voice Vote. [Congress.gov, accessed 01/19/23]
March 2014: Barr Said H.R. 4167 Would “Ensure That Washington Bureaucrats Don’t Needlessly And Arbitrarily Restrict Access To Credit.” “Today, the House Committee on Financial Services approved two pieces of legislation introduced by Congressman Andy Barr. Both H.R. 2672, the Helping Expand Lending Practices and Rural Communities Act, or the HELP Rural Communities Act, and H.R. 4167, the Restoring Proven Financing for American Employers Act, included significant bipartisan input from Democratic members of the Committee, and would ensure that Washington bureaucrats don’t needlessly and arbitrarily restrict access to credit.” [Rep. Andy Barr, 03/13/14]
April 2014: After The House Passed H.R. 4167, Barr Issued A Statement Touting His Bill As A “Commonsense Fix To A Real-World Problem Voiced By Community Banks And Employers.” “Today, the House of Representatives passed Congressman Andy Barr’s bipartisan, commonsense fix to a real-world problem voiced by community banks and employers in Kentucky. [...] ‘H.R. 4167, the Restoring Proven Financing for American Employers Act, is a bipartisan clarification that fixes a regulatory problem impacting jobs that support families in Kentucky and across the United States,’ said Congressman Barr.” [Rep. Andy Barr, 04/29/14]
Consumer Advocates, Americans For Financial Reform, Asked Congress To Reject H.R. 4167 Because It Would Exempt “Almost All” Collateralized Loan Obligations (CLOs) From Volcker Rule Restrictions And “Create Dangerous Loopholes In Volcker Rule Risk Protections For No Clear Public Purpose.” ““On behalf of Americans for Financial Reform, we are writing to express our opposition to H.R. 4167, the ‘Restoring Proven Financing for American Employers Act’. By exempting almost all collateralized loan obligations (CLOs) issued before January, 2014 from Volcker Rule restrictions on bank sponsorship of external funds, this legislation would seriously undermine the risk protections created by the Volcker Rule. [...] We urge you to reject this legislation, which would create dangerous loopholes in Volcker Rule risk protections for no clear public purpose.” [Americans for Financial Reform, 03/12/14]
- The Volcker Rule, Created As A Response “To The Problems Revealed In The Global Financial Crisis” In 2008, “Makes The Banking System Safer By Banning [Banks’] Proprietary Gambling With Customer Funds.” “The Volcker Rule makes the banking system safer by banning proprietary gambling with customer funds, and sharply restricting bank sponsorship of external funds such as hedge funds that could permit banks to engage in such gambles through external vehicles. These restrictions on bank sponsorship of external funds, including securitizations, were and are directly responsive to the problems revealed in the global financial crisis.” [Americans for Financial Reform, 03/12/14]