WASHINGTON (2/25/11)--Credit Union National Association (CUNA) President/CEO Bill Cheney is scheduled to testify Wednesday before a House Financial Services subcommittee, which is studying the impact of the Dodd-Frank Act on small financial institutions and small businesses.
The Dodd-Frank financial regulatory reform package, which was signed into law last year, contains numerous changes to current financial laws, but little in the over 2000 pages of new laws directly impacts credit unions. CUNA has noted that while credit unions are still going to experience burdens related to the regulations, there are not many "wholesale" changes. CUNA continues to work with the Fed to shield credit unions from any unneeded regulatory burdens. Bank and other regulators are supposed to develop around 170 new rules and regulatory amendments by July, some early as April. Credit unions will be subject to far fewer rules but CUNA has nonetheless made it a priority to minimize the burden to credit unions of any new regulation, including those under Dodd-Frank. Many rules that are the responsibility of a single agency have already been adopted, but those involving multiple agencies remain a concern, according to observers. Some have suggested that regulators could extend the rulemaking process beyond the current July deadline if a substantive proposal is released soon. The Senate Banking Committee last week held its own hearing on Dodd-Frank implementation. That committee examined regulators' implementation progress at the half-year mark, and substantial concern was expressed by lawmakers regarding the Federal Reserve's proposed implementation of an interchange fee cap. Several lawmakers have called for a delay in interchange implementation, and CUNA has suggested that the Federal Reserve work with Congress to delay implementation by up to two years to allow greater time to consider the interchange changes potential impact. The House Financial Services Committee has planned hearings on government-sponsored enterprise reform, the National Flood Insurance Program, oversight of the Consumer Financial Protection Bureau, monetary policy, and other issues during March. The committee has also scheduled a March 2 hearing and a March 3 markup session that will address the Obama Administration’s various home market and mortgage assistance programs.(See related story: House panel looks to end Obama mortgage-aid programs.)