WASHINGTON—The CFPB is being urged to "consider more frequent reviews of its significant rulemakings to identify ways to reduce burdens on small entities like credit unions."
The request was made by NAFCU's Mahlet Makonnen in a letter responding to a request for information on the Bureau's plan for review of its rule under the Regulatory Flexibility Act (RFA).
Makonnen, NAFCU's regulatory affairs counsel, shared the association's support of the CFPB's section 610 review plan, writing that NAFCU "is appreciative of the CFPB's decision to follow the Administrative Procedure Act's notice and comment rulemaking process as it develops plans to conduct reviews of its rules."
Under section 610, agencies are directed by Congress to review certain rules within 10 years of their publication and consider the rules' effect on small businesses.
Impact on Consumers, Competition
Makonnen noted that in addition to the factors outlined in the Bureau's original review plan under the RFA, the CFPB should consider the rule's impact on competition and consumers.
"CFPB's review under the RFA should specifically consider the rule's impact on competition and consumers," wrote Makonnen. "A rule that impedes competition and consumer benefits, such as overdraft and electronic transfer services, could cause a significant economic impact on a substantial number of small entities, including credit unions. As such, the CFPB's 610 review plan should focus on weighing market conditions with current small entity industry practices."
In the letter, NAFCU asks that the CFPB also review the adverse impacts on small entities like credit unions with other rules not subject to 610 review, using the bureau's remittance rule as an example of unnecessary regulatory burdens under which credit unions are subject.