Financial Services Committee

Referred to the House Committee on Financial Services.

This bill increases the mandatory financial contributions from Federal Home Loan Banks to the Affordable Housing Program by extending a 15 percent net income requirement through 2025 and establishing it as the permanent rate for 2026 and beyond. The legislation directly affects the Federal Home Loan Banks, which are government-sponsored enterprises that provide funding to member banks and credit unions. A key provision ensures that these annual contributions will not fall below $100 million in any given year, regardless of the banks' net income fluctuations.

The Janie Wynn Protecting Elders from Financial Exploitation Act requires the Bureau of Consumer Financial Protection to issue rules within 180 days that mandate fraud alerts and enhanced training for financial institutions serving senior citizens. Card issuers must send fraud alerts to both the senior cardholder and a designated adult contact, unless the cardholder signs a waiver acknowledging the increased risk of exploitation. Banks and credit unions are required to train employees on identifying specific account activities indicative of abuse and must notify seniors within 24 hours if such activity is detected. These provisions directly affect financial institutions by imposing new monitoring and communication duties aimed at protecting older adults from financial fraud.

This bill would prohibit any state or local government designated as a "sanctuary jurisdiction" from receiving grant funds distributed by the Department of Housing and Urban Development (HUD). A jurisdiction is defined as a sanctuary if it has laws, policies, or practices that restrict officials from sharing information about an individual's immigration status or from complying with federal requests to detain or notify about the release of individuals. The funding restriction would apply to grants distributed 180 days after the bill's enactment. To determine which jurisdictions qualify for this ineligibility, the HUD Secretary is required to consult with the Secretary of Homeland Security.

The CLEAR Forms Act directs the Securities and Exchange Commission to create new registration forms for specific insurance products, including contingent deferred annuities and registered index-linked life insurance. The bill requires the agency to design these forms so that purchasers can make informed decisions, mandating investor testing to ensure the language is understandable for these complex financial instruments. If the SEC fails to finalize the rules within 30 months of enactment, insurers would be permitted to register these products using existing forms currently used for variable annuities and life insurance.