Legislative Update

Third Quarter 2011

Federal Legislation

Other Proposed Legislation

On July 15, Representatives Bill Posey (R-Fla.), Gregory Meeks (D-N.Y.), and Mario Diaz-Balart (R-Fla.) introduced H.R.2568, which would prevent the IRS from requiring U.S. banks to report interest on deposits of nonresident aliens. Regulators would use the information to combat offshore tax evasion, but some legislators believe the enhanced reporting requirements would give foreign investors an incentive to withdraw their money from U.S. banks. The bill was referred to the House Committee on Ways and Means, and an identical bill was introduced in the Senate on August 2 (S.1506).

The Data Security Act of 2011, introduced on July 28 by Senator Thomas Carper (D-Del.), would require businesses and federal agencies to implement certain data security measures in order to protect personal consumer information (S.1434). It would also require that consumers be notified in the event of a personal data breach. This is the fourth time Carper has introduced the proposal. The bill was referred to the Senate Committee on Banking, Housing, and Urban Affairs.

The Homeownership Affordability Act, introduced on August 2 by Senators Robert Menendez (D-N.J.) and Johnny Isakson (R-Ga.), would extend higher maximum mortgage sizes eligible for purchase by Fannie Mae, Freddie Mac, and the Federal Housing Administration until 2013 (S.1508). The higher conforming loan limits subsequently expired on September 30, 2011, as the maximum eligible mortgage size decreased from $729,750 to $625,550 for a single-family residence in a high-cost area. The bill was referred to the Senate Committee on Banking, Housing, and Urban Affairs.