Sen. Portman urges CFPB to tailor rulemakings
The results of CUNA’s comprehensive regulatory burden study were cited by Sen. Rob Portman (R-Ohio) in a letter he wrote to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray stressing the importance of tailored regulations. CUNA and the Ohio Credit Union League have engaged with members of Congress with concerns over the CFPB’s regulatory approach.
CUNA’s study, conducted with Cornerstone Advisors and with the support of state leagues, found that regulatory burden cost credit unions and members $7.2 billion in 2014 alone.
In his letter, Portman noted that overly broad regulations disproportionately harm smaller financial institutions, and asked that “CFPB regulations, particularly regarding credit unions and community banks, be tailored to the systemic risk factors of smaller financial institutions.”
Portman urged Cordray and the CFPB to exercise its authority under section 1022 of the Dodd-Frank Act, which allows the bureau to exempt certain classes of entities from certain rulemakings.
CUNA is also coordinating with Sens. Ben Sasse (R-Neb.) and Joe Donnelly (D-Ind.) to circulate a similar letter among members of the Senate. CUNA and league efforts earlier this year led to a letter calling for tailored regulations signed by 329 members of the House.