Removing Barriers Blog

CUNA Writes to House Financial Services Outlining Next Steps for Regulatory Relief
Posted May 23, 2018 by Chandler Schuette

After the House passed the bipartisan regulatory relief bill, S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act late Tuesday afternoon CUNA took the opportunity to write to the House Financial Services Chairman and Ranking Member to highlight areas where credit unions need additional regulatory relief.

“We thank the Senate and the House for passing S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, and look forward to the President signing this bill into law very soon. Congress should be proud to have enacted this commonsense and targeted regulatory relief bill on a bipartisan basis. But, more needs to be done to ensure that consumers and small businesses that rely on credit unions and small banks to for access to credit can continue to receive those services safely and affordably.”

In the letter CUNA highlighted the need for structural changes at the Bureau of Consumer Financial Protection (BCFP).  CUNA reiterated the need for Congress to replace the lone director with a multi-person, bipartisan commission.

In addition to urging for structural changes at the BCFP, CUNA encourages the Committee work with credit unions on efforts related to the NCUA’s Risk Based Capital Rule (RBC), to strike a balance with BSA/AML regulations, and to address weaknesses in the law that permit and perpetuate merchant data breaches.

Additionally the Committee needs to continue its work on a number of regulatory relief bills – and Congress needs to enact several of the bills that have passed the Committee with bipartisan support.

  • H.R. 1116 - Taking Account of Institutions with Low Operation Risk (TAILOR) Act, which would require federal regulators to tailor regulations to fit the business model and risk profile of institutions;
  • H.R. 2396 - Privacy Notification Technical Correction Act, which would update the Gramm-Leach-Bliley Act to update the exception for certain annual notices provided by financial institutions;
  • H.R. 2706 - Financial Institution Consumer Protection Act, which would specify that government agencies cannot request or order a financial institution to terminate a customer account for reasons of reputational risk;
  • H.R. 3072 - Bureau of Consumer Financial Protection Examination and Reporting Threshold Act, which would increase the threshold at which financial institutions are subject to direct examination and reporting requirements of the bureau to $50 billion, up from $10 billion;
  • H.R. 3299 - Protecting Consumers’ Access to Credit Act, which would ensure state loans that are valid when made as to their maximum rate of interest in accordance with federal law shall remain valid with respect to that rate regardless of whether a bank has subsequently sold or assigned the loan to a third party;
  • H.R. 3911 - Risk-Based Credit Examination Act, which would allow the Securities and Exchange Commission to perform risk-based examinations of the Nationally Recognized Statistical Rating Organizations (NRSROs) and reduce compliance burdens for financial services providers;
  • H.R. 4545 - Financial Institutions Examination Fairness and Reform Act, which would facilitate examination transparency and consistency for credit unions and other financial institutions; and
  • H.R. 5078 - TRID Improvement Act, which would amend the Real Estate Settlement Procedures Act to require the bureau to allow the accurate disclosure of title insurance premiums and any potential available discounts to homebuyers.

On behalf of America’s credit unions and their 110 million members, CUNA looks forward to working with leadership on both sides of the Capitol to ensure common sense regulations are signed into law.