CUNA is actively monitoring available information to assess how a legislative package intended to replace the Dodd-Frank Act could affect credit unions and whether meaningful relief might be afforded to small financial institutions.
Rep. Jeb Hensarling (R-Texas), who heads the House Financial Services Committee, says he will unveil details about his legislative plan on June 7 in a speech to the Economic Club of New York.
Eli Joseph, CUNA's deputy chief advocacy officer for congressional relations, notes the two most important things for credit unions to know about the plan at this early juncture: He says that while the announcement promises to spark lively discussions, likely no action will be taken on the initiatives this year. On the other hand, he adds, the package can be considered an agenda-setting document for post-election 2017, either to be considered as a whole or broken into parts.
Joseph notes that the Consumer Financial Protection Bureau (CFPB), which was created by Dodd-Frank, may likely to be the subject of many proposed changes within the Hensarling plan.
CUNA strongly supports the creation of a five-member panel to head the agency and believes the current sole-director structure at the CFPB jeopardizes the bureau’s foundation as an objective, neutral consumer protection agency.
CUNA also wants to see the bureau placed underthe appropriations process, saying that additional level of oversight would be a step toward ensuring credit unions are not further burdened with regulations.
Since passage of Dodd-Frank in 2010, regulatory costs for credit unions jumped by 39%. CUNA consistently advocates that the CFPB rulemakings should be narrowly tailored to focus on less-regulated participants in the financial services marketplace and those who caused the financial crisis.