WASHINGTON, D.C. – The Maine Bankers Association and the Maine Credit Union League have announced their support for the RELIEVE Act, legislation authored by U.S. Senator Angus King (I-Maine), Deb Fischer (R-Neb.), Mark Warner (D-Va.), and Jon Tester (D-Mont.) that would provide immediate regulatory relief to America’s small financial institutions, like community banks and credit unions. The Maine organizations join the U.S Chamber of Commerce, American Bankers Association, Credit Union National Association, and the National Association of Federal Credit Unions in supporting the bill.

“The RELIEVE ACT and other similar proposals are needed to provide actual regulatory relief to Maine banks and ultimately consumers by expanding access to credit for more borrowers.  We want creditworthy Maine consumers to be able to obtain loans from regulated institutions and not be forced into the “shadow” unregulated loan industry,” wrote Christopher W. Pinkham, President of the Maine Bankers Association. “Senator King, the Maine Bankers Association strongly supports your efforts to revisit laws that hamper economic growth for the state of Maine.”

“Credit unions have remained a well-capitalized source of financial stability through some of the nation’s most challenging times and we strive to continue to offer our members the products and services they need to support their families and businesses,” wrote John G. Murphy, President/CEO of the Maine Credit Union League. “We thank you for your support in examining and addressing this issue of increased regulatory burden on this industry, and we welcome any efforts to help ease that burden so that Maine’s credit unions can continue to grow and serve those in our communities.”

The full letters of support from the Maine Bankers Association and the Maine Credit Union League can be read by following the links.

As many smaller financial institutions struggle under the weight of shortsighted regulations, the RELIEVE Act would help lift the burden by modernizing outdated regulations, making technical corrections to the Dodd-Frank Act, and providing parity for credit unions with regard to insurance coverage of lawyer trust accounts and other escrow accounts. More specifically, the bill would:

• Require the Federal Reserve to revise the Small Bank Holding Company Policy Statement so that the policy applies to bank holding companies and savings and loans holding companies with pro forma assets of less than $1 billion, an increase from the current threshold of $500 million.
• Improve the definition of “rural” so that more counties will be considered rural for the purposes of the rules of the Bureau of Consumer Financial Protection; increase the annual mortgage origination limit for rural creditors from 500 to 1,000 per year.
• Provide credit unions parity with FDIC-insured institutions when it comes to deposit insurance coverage on Interest on Lawyers Trust Accounts (IOLTAs) and other escrow accounts.

A summary of the legislation can be viewed by clicking HERE.

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