The growth of bank regulation — an “avalanche of new rules, guidance and seemingly ever-changing expectations of the regulators” — is hindering hometown banks in their efforts to serve customers, ABA Community Bankers Council Member Tyrone Fenderson told the House Financial Services Committee.
Fenderson, the president and CEO of Commonwealth National Bank, Mobile, Ala., shared anecdotes from bankers of how regulatory burden hurts customers. For example, a Texas bank had to employ a computerized underwriting model to avoid inadvertent fair lending violations and thus rejected applications from customers of many decades.
“These stories are common at hometown banks across the country,” he said. “Community banks have always prided themselves on being flexible to meet the unique circumstances of their customers.” To help hometown banks maintain this tradition, he urged the House to pass several recently introduced bills. These bills, Fenderson explained, would remove impediments to serving customers, improve access to home loans and ensure that the CFPB implements regulations with a fair and even hand.
Read the testimony.