Regulatory burdens are impeded consumer access to credit, CUNA Vice President of Research and Policy Analysis Mike Schenk told the Washington Examiner this week, when discussing the bipartisan Economic Growth, Regulatory Relief and Consumer Protection Act. The bill, passed by the Senate in March, is strongly supported by CUNA for the numerous regulatory relief provisions it contains.
“One example is mortgage lending, which is subject to new regulations meant to prevent the kinds of abuses that became prevalent in the subprime crisis.
“A lot of loans that could be made aren't being made” because of burdensome mortgage lending rules, Schenk said.
The bill would establish safe harbors for certain Qualified Mortgages, provide Home Mortgage Disclosure Act reporting relief for smaller institutions, among other changes to mortgage lending and servicing rules.
Schenk also noted that credit unions’ not-for-profit, member-owned structure means that regulatory relief would benefit member-owners, as money isn’t being spent on compliance, but on additional products and services.
“At a very basic level, any regulatory relief is going to be helpful because it gives money back to average people,” he said.
Credit unions around the country have been vocal in their support of the Economic Growth, Regulatory Relief and Consumer Protection Act, urging the House to take up and pass the bill. These efforts include: