WASHINGTON (9/10/14)--The Senate Banking Committee held a hearing to discuss many aspects of Wall Street reform and the financial regulatory system Tuesday. The hearing, which featured federal bank regulators, discussed the effect of regulations on various institutions, as well as ways to provide regulatory relief for smaller banks.
Daniel Tarullo, governor of the Federal Reserve System Board of Governors, described ways in which his agency has tried to reduce regulatory burdens on banks with assets of less than $1 billion. He advocated for such banks to be excluded from several parts of the Dodd-Frank Act, including the incentive compensation requirements.
Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), addressed actions the bureau has taken against payday lenders and mortgage scammers, as well as rules it is developing on prepaid cards, debt collection and payday lending.
Regulatory relief is one of the Credit Union National Association's top priorities, one it has been continuously advocating for from both a legislative and regulatory perspective. While Congress is in session the next two weeks, CUNA plans to push for passage of five regulatory relief bills, and will push for passage in the post-election session later this year as well.
CUNA testified before the House subcommittee on financial institutions and consumer credit in July, expressing support for six regulatory reform bills. CUNA also brought issues such as the National Credit Union Administration's risk-based capital proposal, the CFPB's examination thresholds and examination authority and the impact of unreasonable effective dates to the subcommittee's attention.
From a regulatory perspective, CUNA has been active in recent weeks, meeting with board members and staff from the NCUA regarding its risk-based capital proposal. CUNA also used those meetings to ask for additional rules that would reduce the regulatory burden on credit unions.
CUNA has requested a meeting with Federal Housing Finance Agency Director Mel Watt regarding his agency's Federal Home Loan Bank (FHLB) and met last week with FHLB representatives last week.
The topic of these meetings is a proposal from the FHFA that would require 10% of assets in residential mortgage loans on a consistent basis to remain an FHLB member. The current requirement states that a credit union must have 10% in residential mortgage loans only at the time membership is granted.
The proposal could "create significant barriers to credit union membership in FHLBs," according to CUNA, which could deprive those credit unions of an important source of liquidity.
Use the resource links below to access News Now coverage of CUNA's regulatory relief efforts.