Rep. Jeb Hensarling’s (R-Texas) newly unveiled alternative to the Dodd-Frank Act contains a number of CUNA-backed regulatory relief provisions. Hensarling, chair of the House Financial Services Committee, called for tailoring regulations to fit small financial institutions’ business model, as opposed to the current “one-size-fits-all” approach.
"We appreciate Chairman Hensarling’s provisions that tackle some of the regulatory burdens shouldered by Main Street, community financial institutions--especially the consideration it gives to credit unions' supervisory concerns,” said CUNA Chief Advocacy Officer Ryan Donovan. "CUNA also strongly supports the creation of a 5-member panel to head the Consumer Financial Protection Bureau (CFPB) and believes the current sole-director structure at the CFPB jeopardizes the bureau’s foundation as an objective, neutral consumer protection agency.
"Credit unions didn't create the financial crisis but are impacted daily, nonetheless, by excessive regulation. Reducing unnecessary rules will free resources and enhance their ability to serve their members," Donovan added.
The bill’s language to move the CFPB under the appropriations process, and replace the current director with a 5-person board is also present in the draft financial services and general government appropriations bill that will be marked up Thursday.
Hensarling's bill contains language from a number of CUNA-supported bills, including:
The bill would also repeal the Durbin Amendment, which is part of Dodd-Frank and requires a limit on fees charged to retailers for debit card purchases.
Hensarling’s bill is officially titled the Financial CHOICE Act, in which CHOICE stands for Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs.