WASHINGTON (12/31/15)--The U.S. Government Accountability Office (GAO) has taken an early look at the impact of the Dodd-Frank Act on credit unions and community banks.
This investigative arm of the U.S. Congress has found suggestions of "moderate to minimal initial reductions in the availability of credit" among those responding to various surveys on the subject.
CUNA has consistently warned of the serious costs to credit unions and consumers represented by the burden of rules that sprang from the 2,300-page Dodd-Frank Wall Street Reform and Consumer Protection Act.
CUNA has delivered that message as testimony in congressional hearings, letters to and meetings with members of Congress, and meetings with and letters to government agency officials and their staffs--both before and since the act was signed into law in 2010.
The GAO noted that it used information from CUNA in the report, and also acknowledged that its findings so far are early and manyregulatory changes were not in effect at the time of its research.
The data omission would include the recent Truth in Lending Act-Real Estate Settlement Procedures Act integrated disclosure (TRID) rule, which went into effect for closed-end residential mortgages only on Oct. 3. It also excludes any data on the new Home Mortgage Disclosure Act rule for which reporting does not commence until Jan. 1, 2018.
Both rules will have significant costs to credit unions, CUNA has said, which could threaten to decrease mortgage-credit availability to their members.
"This GAO report describes its early findings on the impact of Dodd-Frank regulatory burden on credit unions and community banks," noted CUNA Deputy Chief Advocacy Officer Elizabeth Eurgubian Wednesday.
"It is our hope that Congress will thoroughly investigate the costs of regulatory burden as the full picture unfolds and more regulatory requirements become effective."