CUNA supports the Consumer Financial Protection Bureau (CFPB) conducting regular, robust reviews of its regulations with an eye toward reducing burden, it wrote to the CFPB Monday in response to the agency’s review plan as required by the Regulatory Flexibility Act. The act requires agencies to conduct a review of a rule ten years after final action, focusing on the rule’s economic impact on small entities.
According to the CFPB’s plan, it intends to initiate its review approximately one year before the 10-year deadline, and although not required by statute, the CFPB will also solicit feedback from stakeholders via public comment on the rule under review.
“CUNA is supportive of the CFPB’s plan to solicit stakeholder feedback during the RFA Review process...Credit unions have long encouraged the CFPB to conduct regular, extensive reviews of the regulations under its juris n diction. These reviews should be aimed at streamlining requirements, eliminating outdated or superfluous requirements and providing exemptions for certain community-based entities, such as credit unions and CUSOs, where appropriate,” the letter reads.
“However, credit unions also believe it is critical that the Bureau keep in mind that any change to a regulation – even a change intended to reduce regulatory burden – likely comes at a cost to regulated entities,” it adds. “Therefore, we call on the Bureau to conduct robust cost-benefit analyses as part of its RFA Reviews to ensure any potential changes would have a positive impact when considering the overall regulatory landscape.
CUNA’s letter also notes that, “based on the statutory intent of the RFA, any RFA Review should be exclusively focused on the reduction of regulatory burden and the Bureau should entirely avoid the creation of any new, burdensome requirements on credit unions.”