Congress Considers DIDMCA Bill

The House Financial Services Committee met this week for a hearing titled “Strengthening the American Economy: Promoting Growth, Opportunity, and Prosperity.” Members discussed the economic effect of pro-growth policies and regulatory reforms, as well as how these measures can help address broader affordability challenges, and H.R. 7866, the “American Lending Fairness Act” (ALFA).

Before the hearing, AFSA sent a letter to the House Financial Services Committee expressing support for the bipartisan legislation. The bill would promote parity among lending institutions nationwide, clarify the limited scope of the Depository Institutions Deregulation and Monetary Control Act’s (DIDMCA) opt-out provision, and provide greater certainty that the dual banking system is preserved.

During the hearing, ALFA sponsor Rep. Warren Davidson (R-OH) emphasized the bill’s purpose: “It [ALFA] just sets up a way where state-regulated banks could compete on a level playing field with nationally regulated banks.”

In July several financial trade organizations including AFSA, the American Bankers Association, America’s Credit Unions, the American Fintech Council, the Consumer Bankers Association, and the National Association of Industrial Bankers, expressed support for ALFA.

AFSA appreciates the Financial Services Committee’s attention to this important issue and urges Congress to pass ALFA.