Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 725 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Florida (Mr.…
Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 725 and ask for its immediate consideration.
Mr. Speaker, for the purpose of debate only, I yield the customary 30 minutes to the gentleman from Florida (Mr. Hastings), pending which I yield myself such time as I may consume. During consideration of this resolution, all time yielded is for the purpose of debate only.
General Leave
Mr. Speaker, I ask unanimous consent that all Members have 5 legislative days to revise and extend their remarks.
Mr. Speaker, I rise today in support of the rule and the underlying legislation. This rule makes in order two bills reported favorably by the Committee on Financial Services and one bill reported favorably by the Committee on Energy and Commerce. I just want to take a moment at the beginning to point out that there are no amendments made in order by this rule because there were no amendments offered to any of these bills.
Both of the Financial Services bills were the subject of hearings in the committee last year. Both bills were reported out of committee with bipartisan support of 75 percent or more of the committee members.
The Energy and Commerce bill was reported favorably by the committee with a large bipartisan vote of 39-14.
The rule also provides us with the necessary tools to ensure that we can bring government funding measures to the floor quickly to prevent a government shutdown.
Mr. Speaker, we have three bills before us today. Each of these bills deals with one underlying problem: Washington overregulation. That is it. These are not bills protecting Americans from some foreign hostile force. These are bills protecting Americans from the overreach of their own government.
It is a sad time in which we find ourselves when we must dedicate legislative effort to undoing the harmful effects of the American government on the American people.
Mr. Speaker, in 2013, the CFPB issued its rule commonly referred to as the qualified mortgage rule, or the QM rule. The QM rule requires creditors to make a good faith effort to determine a customer's ability to repay a loan if the loan is secured by a home. However, the rule creates a legal safe harbor from liability under the rule for qualified mortgages.
One aspect of a qualified mortgage is that it cannot have total points and fees exceeding 3 percent of the total loan amount if the loan amount is at least $100,000. However, some fees may be excluded from the points and fees cap if they are reasonable and the lender or any affiliate of the lender receives no compensation from the service.
This all sounds well and good. We certainly don't want predatory lending institutions referring business to themselves just to pad their bottom line at the expense of unsuspecting borrowers.
But this is a great example of how massive, one-size-fits-all Washington regulation often ends up hurting Americans. The result of the points and fees cap within the QM rule has been to place low- and moderate-income borrowers in a position where they end up spending more money to secure a loan.
Mr. Speaker, my home State of Colorado has been experiencing explosive population growth over the past decade and longer. Between 2009 and 2016, we added a net increase of more than 600,000 people. But home prices also increased significantly over that time, more than 57 percent.
In 2016, according to The Denver Post, we had the lowest growth we have experienced in many years at only a 30,000-person net increase. In part, the slowing growth rate has to do with rising housing costs. This is why it is vitally important that many first-time homeowners and others have access to affordable loans. Government regulation should not be a part of driving up housing costs.
Why does this happen? Why does a Federal regulation result in hurting the very people it is intended to help?
It is simple: Washington regulators cannot take into account the unique circumstances of each individual American. This is a crucial difference between the common sense of Americans across this land and the self-importance of some here in D.C.
Many in D.C. believe firmly that the Federal Government is able to protect every American from every bad experience. They express enormous faith in so-called experts who believe they can effectively govern from afar the lives of Americans.
I reject this notion. I reject the belief that a class of enlightened experts and bureaucrats in Washington can better run the lives of individuals. That philosophy deprives Americans of the freedom to make their own choices. When Washington's power expands, individual liberty retreats. So we have to have bills like the ones before us today.
The Dodd-Frank financial regulatory bill required the CFPB to issue the QM rule. The QM rule was supposed to help low- to moderate-income borrowers save money, but, instead, the QM rule created a situation where low- and moderate-income borrowers cannot take advantage of discounted services offered by their lender.
The rule forces these borrowers to secure these services from third parties which almost always charge more than the lenders would charge for the same services. The negative impact of this rule is so abundantly clear that half of the committee's Democrats voted with all of the Republicans in support of fixing this provision of Dodd-Frank.
Passing this bill will not magically cause housing in Colorado to become more affordable, but it will eliminate an unnecessary regulation that needlessly drives up borrowing costs.
Mr. Speaker, in addition to rolling back Dodd-Frank regulations, the second Financial Services bill that we have before us today protects the ability of small banks to issue debt and raise capital.
The Federal Reserve generally discourages bank holding companies from using debt to finance acquisitions, particularly the purchasing of banks. However, the Federal Reserve carved out certain small bank holding companies.
In order to be considered a small bank holding company, these companies had an asset cap of $150 million. By 2015, the cap had been increased to $1 billion. The bill before us today increases the cap to $3 billion.
As we have heard last night during testimony at the Rules Committee, there is no science or data behind the level of the cap. Think about that for a second. The government has established a cap that has a negative impact on our community banks, and the cap has no basis in anything, not science, not data, not historical financial patterns, nothing. The cap is simply a whim of Washington.
Mr. Speaker, this is absurd. It is time we allow our community banks to have an avenue to continue being locally owned and based in our communities rather than being bought out by Wall Street.
Today we have two Financial Services bills before us that reduce regulations and allow Coloradans and all Americans greater freedom in the choice of banking services. I urge support of these two bills.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I just want to point out to my friend from Florida that we were both here on the floor as the House of Representatives passed all 12 appropriations bills in early September.
As we look across to the other side of the Capitol, not much work has been done on those appropriations bills since they left the House and traveled to the Senate.
The answer to the continuing problem that we have with continuing resolutions is to find Members of the Senate who are willing to work as hard as the House has and pass appropriations bills and fund the government.
Unfortunately, that doesn't seem to be happening right now, and I hope we do pass a continuing resolution, I hope we do fund the military, and I hope we give some more stability to this government.
But the finger pointing in this case I don't think is warranted in the House.
Mr. Speaker, I yield 5 minutes to the gentlewoman from Utah (Mrs. Love).
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I want to turn now to the final bill made in order under this rule, the Common Sense Nutrition Disclosure Act.
Mr. Speaker, in 2016, I had the privilege to visit with one of my constituents, Lamont Muchmore. Lamont owns a Papa John's pizza franchise and invited me to come to his restaurant. He even taught me how to throw, or how to toss--maybe throw, maybe toss--a pizza. It was a great experience. I got to meet members of his team and hear about their professional goals. I am happy to say that the American Dream is alive within the hearts of the people of Colorado.
However, my visit with Lamont was not without concern. You see, recently, Washington had decided to push a hugely disruptive regulation on our food service industry.
In the interest of ensuring Americans had information on their food choices, Washington crafted a one-size-fits-all mandate that every menu item be labeled with its nutritional content.
As someone who has become extremely aware of the quality of foods that I consume, I certainly understand the do-good intentions behind this kind of regulation. But the impact on businesses like Lamont's has been substantial. In fact, some businesses have no realistic way of complying with the rules.
Further, the law that put these regulations in place, ObamaCare, placed criminal penalties on those who fail to comply. How ridiculous is that? If you mislabel or fail to properly label the calorie count on a menu item, you could be fined and go to jail.
The bill before us today rectifies some of the harm done by this rule. The bill allows multiple avenues for businesses such as Lamont's pizza restaurant to comply with menu labeling requirements in the most cost-effective manner possible.
While I don't believe the Federal Government needs to require the calorie count of a food item on a menu in Colorado, this bill offers a compromise. Americans will still have access to nutrition information about the food they are purchasing, while businesses will be able to provide a variety of prepared and local foods without fear of major penalties if one serving happens to be slightly different in its calorie count than the last serving.
Mr. Speaker, I cannot tell you how frustrating it is to visit with Coloradans who are working hard to build their businesses, provide for their families and community, and employ people, only to be met with the constant headwind that our Federal Government blows in their faces through its Washington-knows-best regulatory schemes. Washington should get out of the way and let Americans do what we do best: cultivate our resources for the good of our family and neighbors.
I think often of Coloradans like Lamont. It is men and women like him all across this great land that are doing the important work. I am committed to ensuring that this Federal Government stops jeopardizing their hard-won success, and that Washington's so-called experts give honor where it is due: to the hardworking American people.
I thank Lamont for taking the time out of his day to visit with me. This bill answers the needs of his team, and I urge its passage.
Mr. Speaker, I reserve the balance of my time.
Will the gentleman yield?
He does.
I don't believe he owns more than 20.
I will pass that information on to Lamont, although I disagree with your reading.
Mr. Speaker, I yield myself such time as I may consume.
Washington is out of step with the vast majority of the American people. It is true that we often do work here that moves our country forward, that protects this great land, but it is also true that there is a competing worldview in this City which seeks to rule over the American people.
In Colorado, we have experienced the negative effects of overreach by the Federal Government.
How is it that regulators living 1,700 miles away from us believe they can create rules that take into account our needs and that respect our way of life?
It is just not possible.
Washington is good at stamping out large Federal programs. The problem is that it usually stamps out individual liberty in the process. This City must stop telling the people of Colorado how to live every detail of their lives. Washington's so-called experts must stop burying Colorado businessmen and -women under piles of rules.
If we truly free our people to grow and pursue their hopes and dreams, we will experience a renaissance of growth unmatched in our history. This Congress has done good work in rolling back the strong arm of the Federal Government, but there is more work to do.
These bills before us continue what should be a never-ending pursuit of giving back to the people their personal liberty which has been confiscated by overreaching Federal Government.
Mr. Speaker, I thank Chairman Hensarling and Chairman Walden for their work on these bills. I thank Chairman Sessions for bringing these bills to the floor.
Mr. Speaker, I urge passage of the bills and the rule.
Mr. Speaker, I yield back the balance of my time, and I move the previous question on the resolution.