Removing Barriers Blog

Hensarling Unveils Package of Reforms to Dodd-Frank Act
Posted June 07, 2016 by CUNA Advocacy

This morning,  before the Economic Club of New York, House Financial Services Chairman Jeb Hensarling outlined his proposals to reform the Dodd-Frank Wall Street Reform and Consumer Protection Act.  In his remarks, Hensarling noted that the proposal “requires financial regulators to tailor regulations so they fit a bank or credit union’s business model and risk profile.”  He added that these provisions would help “America’s small, hometown banks and credit unions to focus their time and resources on serving their customers rather than the dictates of Washington bureaucrats.” 

The Hensarling proposal (hyperlink) contains several provisions that CUNA has supported, including language for the CFPB to be headed by a five-person commission (H.R. 1266) and bringing the CFPB under the appropriations process (H.R. 1486).   

The bill also contains several other CUNA-supported efforts, including: 

H.R. 1210, the Portfolio Lending and Mortgage Access Act, which would allow credit unions to treat mortgages held in portfolio as qualified mortgages for CFPB mortgage rules; 

  • H.R. 766, the Financial Institution Customer Protection Act, which would prevent federal agencies from ordering depository institutions to terminate banking relationships without a material reason (reputational risk not being a material reason); 

  • H.R. 2896, Taking Account of Institutions with Low Operation Risk (TAILOR) Act, which encourages the CFPB and other financial regulators to account for size and risk of entities when implementing regulations; and 

  • H.R. 1941, the Financial Institution Examination Fairness and Reform Act, which requires financial institution regulators to conduct fair exams for those they supervise and ensure safety and soundness. 

All of the CUNA-supported proposals in the Hensarling proposal have passed the House Financial Services Committee this session, and H.R. 1210 and H.R. 766 have passed the full House.  While the Hensarling proposal is not likely to be enacted this year, we will continue to work with Congress and others on achieving meaningful regulatory relief for credit unions, who did not cause the financial crisis.