Hensarling's Dodd-Frank Alternative Contains Several CUNA-Backed Regulatory Relief Provisions
FOR IMMEDIATE RELEASE
Contact: Vicki Christner - CUNA Communications; 202-329-9950; firstname.lastname@example.org
Washington, DC (June 7, 2016) - 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 five-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,” continued Donovan. “Reducing unnecessary rules will free resources and enhance their ability to serve their members."
Language from a number of CUNA-supported bills are included in Hensarling's Financial CHOICE Act:
Creating an independent examination ombudsman and independent examination appeals process, as well as examination standards for financial institutions. Based on the Financial Institutions Examination and Reform Act (H.R. 1941), which passed the House Financial Services Committee in July 2015
Prohibiting a federal banking agency from suggesting, requesting or ordering a depository institution to terminate specific account, or restrict it from a relationship with a specific consumer. Based on the Financial Consumer Protection Act of 2015 (H.R. 766), which passed the House in February;
Allowing credit unions and other lenders to treat mortgages held in portfolio as Qualified Mortgages for purposes of the CFPB's mortgage lending rules. Based on the Portfolio Lending and Mortgage Act (H.R. 1210), which passed the House in November 2015; and
Requiring federal regulators to take risk into account when promulgating regulations, based on the Taking Account of Institutions with Low Operation Risk Act (H.R. 2896), which passed the House Financial Services Committee in March.
With its network of affiliated state credit union leagues, Credit Union National Association (CUNA) serves America's credit unions, which are owned by more than 100 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information about CUNA, visit www.cuna.org or follow @CUNA on Twitter. For more information about credit unions, visit www.aSmarterChoice.org and follow @asmarterchoice on Twitter.