Removing Barriers Blog

House Speaker's Report Focuses on Regulatory Relief
Posted June 17, 2016 by CUNA Advocacy

Speaker of the House Paul Ryan (R-Wisc.) recently released a report, “A Better Way,” with suggestions about how to improve the economy.  The report emphasizes the impact of overregulation on the financial services industry.  The report states that “regulatory costs on credit unions have increased by $2.8 billion since Dodd Frank was adopted, with a disproportionate cost being born by credit unions with less than $100 million in assets.” 

The Ryan report supports changing the CFPB into a five-person commission rather than a single director, and bringing it under the appropriations process.  The proposal also favors opening the NCUA budget process to improve transparency. 

The report also mentions a number of CUNA-supported bills that would reduce the regulatory burden on credit unions.  These include: 

  • TAILOR Act, allowing regulators to account for a credit union or bank’s small size and business model;  

  • Limitations to Operation Choke Point, which would prevent the federal government from limiting or terminating financial institutions’ relationships with certain customers unless certain criteria are met; and 

  • Financial Institution Examination Fairness and Reform Act, which would reform federal examinations of financial institutions to create an independent ombudsman and an independent examination appeals process. 

  • Mortgage Choice Act, which would adjust the definition of “points and fees” to ensure greater consumer choice in mortgage and settlement services under the Ability to Repay/Qualified Mortgage (QM) rule; and 

  • Portfolio Lending and Mortgage Access Act, which would treat mortgages held in portfolio at credit unions and other mortgage lenders as qualified mortgages. 

Many of the proposals outlined in the Ryan report are also included in Financial Services Committee Chairman Jeb Hensarling’s Dodd-Frank reform package.