Bill intro’d to exempt all FIs under $10B from CFPB rules
WASHINGTON (7/16/15)--CUNA supports the intent of a bill introduced this week that would exempt financial institutions with less than $10 billion in assets from Consumer Financial Protection Bureau (CFPB) rules, and looks forward to working to perfect the legislation as it moves forward.
Rep. Roger Williams (R-Texas) introduced the Community Financial Institution Exemption Act (H.R. 3048) Tuesday.
The bill would exempt credit unions and community banks with less than $10 billion in assets from all rules and regulations put forth by the CFPB.
“In the five years since the enactment of the Dodd-Frank Act, the bureau has proved to be unwilling to use the exemption authority that Congress has conveyed to it; therefore, it is necessary for Congress to state it more explicitly, as your legislation does,” wrote CUNA President/CEO Jim Nussle in a letter sent to Williams Wednesday, adding that CUNA does have some technical concerns with the bill.
Per section 1022 of the Dodd-Frank Act, the bureau is authorized to provide exemptions from the requirements of statutes or implementing regulations generally, or from specific provisions.
“We believe that the Bureau can and should go much further than it has to exempt credit unions from its rulemaking, because credit unions, unlike other financial institutions, have not engaged in the consumer abuse the Bureau is meant to address,” Nussle wrote. “The imposition of regulations on credit unions designed to curb abuse elsewhere in the financial marketplace has the unintended consequence of reducing access to affordable products and services for credit union members.”