WASHINGTON (3/12/12)--S. 2160, the Financial Institution Examination Fairness and Reform Act would enhance safety and soundness by increasing the consistency and fairness of the examionation system and would in no way weaken the federal examination system, the Credit Union National Association (CUNA) said in a letter to Congress last week.
The letter was sent to bill co-sponsors Sen. Jerry Moran (R-Kan.) and Sen. Joe Manchin (D-W. Va.) following the introduction of the bill last week. CUNA expressed itsstrong support of the legislation, thanked the legislators for their leadership, and encouraged them to consider additional enhancements to S. 2160 as the bill moves through the legislative process.
The bill would establish a new inter-agency ombudsman to investigate complaints about examinations and look at examination quality assurance, require regulators to provide clear and consistent loan treatment guidelines, and prevent regulators from retaliating against institutions that challenge their determinations.
The legislation is similar to the Financial Institutions Examination Fairness and Reform Act (H.R. 3461), which was introduced in the House last November.
CUNA has praised both bills as firm steps in the right direction "toward ensuring the federal financial institution regulatory agencies conduct fair exams, which are consistent with the law and regulation and ensure safety and soundness."
H.R. 3461, which is co-sponsored by House Financial Services subcommittee on financial institutions chair Rep. Shelly Moore Capito (R-W.Va.) and ranking member Rep. Carolyn Maloney (D-N.Y.), has 107 cosponsors.