H.R. 4167 would largely protect preexisting bank investments in collateralized loan obligations from Volcker Rule restrictions. In a memo ABA explained:
The interests in CLOs held by banking organizations are different than the direct loans banks regularly make to corporate borrowers. It is not sensible to cause banks to lose value on their investments through precipitous sales unnecessary for safety and soundness reasons.
The second bill, H.R. 2672, would enable banks to appeal to the CFPB to have an area designated as “rural.” The bureau uses rural designations to exempt certain loans from its Qualified Mortgage rule, but it has struggled with how to define rural. ABA wrote that:
H.R. 2672 would help to assure that whatever definition of rural is ultimately used by the CFPB, there would be an avenue to apply to the Bureau to extend the definition of rural in those inevitable cases where a county may have been inappropriately excluded.
Read the letter.