Bill to ease some FI reporting to CFPB intro'd by Sen. Coats
WASHINGTON (3/16/15)--A bill to modify the way financial institutions with less than $10 billion in assets report information to the Consumer Financial Protection Bureau (CFPB) was introduced last week by Sen. Dan Coats (R-Ind.). CUNA supported the bill when it was introduced in the last Congress.
The bill would:
- Require the bureau to use current and existing publicly available information and data prior to requesting any information from the prudential regulator;
- Require the CFPB to provide justification to the regulator if it requests information not currently publicly available as to why the bureau needs that information;
- Give the regulator the authority to deny any request for information from the CFPB; and
- Only allow the CFPB to request institution-specific information rather than industry-wide information.
The bill has the support of the Indiana Credit Union League.
"We appreciate that Sen. Coats continues to recognize the challenges that credit unions face in complying with the crushing regulatory burdens that have increased so much as a result of the financial crisis brought on not by credit unions or community banks but by large institutions," said league President/CEO John McKenzie in a statement.
"While most credit unions (and community banks) are technically exempt from direct CFPB oversight, we remain concerned that the CFPB has the ability in certain circumstances to extend its reach in other ways, such as the reporting requirements that Sen. Coats seeks to address with this bill," he said.
McKenzie added that the bill would be a "good first step" in bringing a measure of regulatory relief to credit unions and community banks.