An Atlanta law partner with King & Spalding, LLP, which maintains a global presence, Zachary Andrew McEntyre handles corporate defense matters, including those related to insurance recovery and class-action suits. A recent posting by Zachary Andrew McEntyre’s firm brought attention to President Donald Trump’s May 2018, signing of the Economic Growth, Regulatory Relief, and Consumer Protection Act.
Described as the most significant effort in curtailing oversight of the banking sector since the passage of Dodd-Frank in 2010, the new Act’s areas of regulatory focus include mortgage lending as well as regulatory relief spanning banks, securities markets, and consumer protection.
Among the major changes is a boost to consumers’ mortgage credit access, with certain mortgage lending rules relaxed or exempted. This includes an elimination of higher-cost mortgage escrow rules, which required that lenders evaluate borrowers’ loan-repayment ability. In addition, escrow requirements are eliminated from a number of higher-cost mortgages.
Another area of focus is on narrowing the criteria employed when deciding whether banks should come under stronger prudential regulation as “systemically important financial institutions” (SIFI). With the SIFI threshold rising immediately from $50 billion to $100 billion, it will increase again to $250 billion within 18 months.
