Removing Barriers Blog

CUNA Witness Shares Regulatory Burdens Hindering Economic Growth
Posted June 08, 2017 by Chandler Schuette

The Senate Banking, Housing, and Urban Development Committee hearing on Fostering Economic Growth: the Role of Financial Institutions in Local Communities just wrapped and CUNA’s witness Dallas Bergl did a great job representing America’s Credit Unions! 

In Mr. Bergl’s opening statement, he emphasized the importance of credit unions to their communities, especially during economic recessions.  He also urged the Committee to examine and tailor regulations for credit unions and community banks.  You can read his entire submitted testimony via this link

During the hearing a number of Senators brought up the current regulatory environment credit unions and community financial institutions currently face and most agreed that credit unions were not the ones who caused the 2008 financial crisis and should not be paying the price for Wall Street.   

Themes from the witnesses and questions from the Senators include: 

  • The cost of complying with Dodd Frank and the CFPB  

  • The effects of TRID and QM Rules on the mortgage market 

  • The CFPB’s 1022 Exemption Authority 

  • The overly burdensome compliance on HMDA data point collection  

  • The rate of consolidation among credit unions and community banks due to Dodd-Frank compliance burdens 

"We've got a real problem in rural America [with bank and credit union consolidation] and that's why it's critical we do something about regulation..." - Senator Tester  

The consolidation [of banks and credit unions] in South Carolina is leading more individuals to be underbanked – Senator Scott, a former credit union board member 

Every new compliance employee "is someone who could [otherwise] be originating small business loans or mortgages...." - Senator Donnelly 

CUNA appreciates the Committee shining a light on the important role community financial institutions play in growing the economy and the opportunity to have a CUNA Board Member testify.  As the Senate takes up regulatory reform, CUNA will continue to advocate on behalf of America’s credit unions and their 110 million members.