WASHINGTON—Reps. Dennis Ross (R-FL) and Kyrsten Sinema (D-AZ) have introduced legislation that would reform the CFPB's governance structure from a single director to a bipartisan commission, while another new bill would delay the implementation date of NCUA’s risk-based capital rule.
Reps. David Scott (D-GA) and Ann Wagner (R-MO) joined them as original cosponsors of the legislation.
"NAFCU has long advocated for a commission structure at the CFPB to provide long-term continuity and stability," said NAFCU President and CEO Dan Berger. "A commission allows for input from differing views to form strong public policy. Until that point, we appreciate working with Acting Director [Mick] Mulvaney and note his continued support of the credit union industry."
The bill would create a five-person commission – appointed by the president and serving staggered five-year terms – to lead the CFPB.
In addition to advocating for a commission to lead the CFPB, NAFCU has supported other reforms to the Bureau, such as bringing it under the congressional appropriations process.
Separately, Reps. Bill Posey (R-FL) and Denny Heck (D-WA) have introduced a bill that would delay the NCUA's risk-based capital (RBC) rule by two years – moving its implementation date from Jan. 1, 2019 to 2021.
"NAFCU thanks Rep. Posey and Rep. Heck for their leadership in acknowledging the harmful impacts the RBC rule would have on the credit union industry and working with credit unions to address this problem," said NAFCU’s Berger. "If the RBC rule is allowed to take effect as written, more than 400 credit unions would see a decline in their capital cushions. A two-year delay in the rule would give the NCUA time to fix the rule and credit unions more time to comply."
NAFCU said it supports an “appropriate RBC system for credit unions. Over the past three years, the association has consistently opposed the NCUA's RBC rulemaking and urged its withdrawal because of the adverse effects it would have on the credit union industry – particularly as a result of regulatory burdens and costs.”
In December, the House Financial Services Committee approved of legislation – also sponsored by Posey – to repeal the NCUA's RBC rule. The bill now awaits House action.