WASHINGTON—Credit unions are being harmed by poorly tailored rules, CUNA President/CEO Jim Nussle said in a letter to House Committee on Government and Reform leadership, while NAFCU reps separately met with a member of Congress to talk reg relief.
CUNA’s letter was sent for the record of the committee’s hearing on the federal regulatory process.
“One-size-fits-all regulation does not work for Main Street – local credit unions, small banks, and the consumers and small businesses they serve. This regulatory philosophy has created a rigged system favoring the largest institutions who can afford to comply with the "solutions" dreamt up in Washington – the very institutions that caused the financial crisis that hurt so many, Nussle wrote. “Now, over-regulation of small institutions is hurting consumers, costing them time and money, and limiting their choices.”
Nussle highlighted several specific policies that could be changed to create a more favorable environment for credit unions, including:
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Subjecting Consumer Financial Protection Bureau (CFPB) bulletins to the Congressional Review Act
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Fixing problems with the Department of Defense’s Military Lending Act regulation that are impacting availability of credit to servicemembers, particularly Question and Answer 2 from the interpretive rule
- Reforming the Small Business Regulator Enforcement Fairness Act (SBREFA) to ensure there is more accountability if CFPB rules do not reflect the feedback provided during SBREFA panels
Separately, NAFCU President and CEO Dan Berger discussed top credit union issues, including the need for industry-wide regulatory relief, during a meeting with House Financial Services Subcommittee Chairman Andy Barr (R-KY).
Barr chairs the Subcommittee on Monetary Policy and Trade. The House recently passed a qualified mortgage relief bill sponsored by Barr. The bill, the Portfolio Lending and Mortgage Access Act (HR 2226), would provide a safe harbor from certain qualified mortgage requirements for residential mortgage loans held on a mortgage originator's portfolio. The bill now awaits Senate action.
NAFCU Vice President of Legislative Affairs Brad Thaler and Associate Director of Legislative Affairs Allyson Browning also attended the meeting.