Removing Barriers Blog

Executive Order Mirrors CUNA’s Calls for Tailored Regulations
Posted February 05, 2017 by Ryan Donovan

President Donald Trump signed an executive order focused on the financial system that calls for “efficient, effective and appropriately tailored” regulations. This is a key objective of Credit Union National Association’s Campaign for Common-Sense Regulation which seeks to relieve regulatory burdens to better allow local institutions like credit unions to make decisions that best suit their communities. 

A key ask from credit unions to the Consumer Financial Protection Bureau (CFPB) over the last several years has been for it to more appropriately tailor regulations to address those harming consumers, and not to unnecessarily sweep credit unions into rules addressing abuse they have not engaged in. Last year 399 Members of Congress also urged the CFPB to tailor its rule to prevent any unintended consequences that negatively impact community banks and credit unions or unnecessarily limit their ability to serve consumers.  

This similar call from the Administration for more narrowly tailored rules highlights even more consensus on this issue, that consumers can be detrimentally impacted when community financial institutions such as credit unions are swept into one-size fits all rules. 

The Order also directs the Secretary of the Treasury to consult with the heads of the member agencies of the Financial Stability Oversight Council (FSOC) and report to the President within 120 days of the date of the order (and periodically thereafter) on the extent to which existing laws, treaties, regulations, guidance, reporting and recordkeeping requirements, and other Government policies promote the Core Principles and what actions have been taken, and are currently being taken, to promote and support the Core Principles. That report, and all subsequent reports, shall identify any laws, treaties, regulations, guidance, reporting and record-keeping requirements, and other Government policies that inhibit Federal regulation of the United States financial system in a manner consistent with the Core Principles. 

Both the CFPB Director and the NCUA Chairman sit on the FSOC. Accordingly, CUNA will be engaging with them to weigh in with credit union concerns that should be incorporated into this report.