On June 9, the House Small Business Subcommittee on Economic Growth, Tax and Capital Access held a hearing titled “Bearing the Burden: Overregulation Impact on Small Banks and Rural Communities.” During the hearing Committee members questioned witnesses from small, community banks about the impact of Dodd-Frank regulations on their ability to serve their communities.
The witnesses explained the unique position that community bankers are in – they often serve areas whose residents are unable to get loans from traditional large-banks, and provide loans for much smaller amounts – and how important they are to their local economy. With the increase in compliance burdens that have been created by Dodd-Frank requirements – intended to rein in the practices of the large banks that caused the recession – they are no longer able to make decisions based on credit, they testified, but rather on compliance.
NAR’s membership has a close relationship with the small business community and works closely with local or community banks, which have been hit hardest by the burden of increased regulations. NAR sent a letter thanking the Subcommittee for looking into this issue, highlighting that relationship as well as the key role that housing plays in rural communities.