Congress should consider feedback from credit unions that participated in Small Business Regulatory Enforcement Fairness Act (SBREFA) panels that felt final rules did not limit impact enough, CUNA wrote Thursday. CUNA’s letter was sent for the record of a Senate Homeland Security and Government Oversight subcommittee on regulatory affairs and federal management hearing.
“While we appreciate that SBREFA adds a layer of protection for small credit unions, we believe the Consumer Financial Protection Bureau (CFPB) should be taking the feedback it receives during this process more seriously,” wrote CUNA President/CEO Jim Nussle. “Additionally, we believe reforms to this process may be needed to ensure there is more accountability if CFPB rules do not reflect the feedback provided during the SBREFA panels and prior to the publication of final rules.”
In the letter, Nussle also noted that as a result of the lack of changes and/or exemptions, small credit unions have had the most difficulty complying with new mortgage rules even after participating in SBREFA.
CUNA also encouraged Congress to continue to analyze whether CFPB final rules properly address credit union and other small financial institution concerns.
The letter also discusses why more transparency, longer time frames for SBREFA, and fewer burdens on small financial institutions participating could lead to an improved SBREFA process.
CUNA highlights that both the NCUA and Small Business Administration’s Office of Advocacy expressed serious concerns about the bureau’s short-term, small-dollar proposed rule, and urged Congress to address those concerns with the CFPB and to consider whether the CFPB should more effectively consult with federal financial regulators.