Topping Senate Banking agenda are GSEs and data security

The Senate Banking Committee will examine proposals to "fix the flawed" housing finance system in the new Congress, according to a summary of Chairman Mike Crapo's legislative priorities unveiled Tuesday.

The committee will also explore capital-formation proposals for new businesses, data security, "targeted reforms" of the credit bureaus, and steps to "ensure the regulatory landscape welcomes" fintech innovation, among other things.

The summary listed housing finance reform first, but a legislative deal to overhaul the system now dominated by the government-sponsored enterprises Fannie Mae and Freddie Mac has eluded Congress for many years. The committee said it will discuss how to "establish appropriate levels of taxpayer protection, preserve the 30-year fixed rate mortgage, increase competition among mortgage guarantors, and promote access to affordable housing."

Capital formation is also on the agenda. The press release noted that the House passed a third iteration of the Jumpstart Our Business Startups Act, or JOBS Act 3.0, in a 406-4 vote last Congress. Crapo did not endorse that legislation, which is mainly focused on capital markets but includes some banking provisions, but the summary said the committee will work quickly to identify what bipartisan bills should be considered to encourage capital formation, reduce burdens for small businesses and improve corporate governance.

After several data breaches, including the 2017 Equifax breach that compromised the personal information of roughly 148 million Americans, Crapo's memo said, consumers need more control over what information is collected and how it is used.

“We need legislative solutions to give consumers more control over and enhanced protection of consumer financial data, and to ensure consumers are notified of breaches in a timely and consistent manner,” the summary said.

Read more at Credit Union Journal.