WASHINGTON–CUNA has sent a letter to the House in support of HR 4099, which would increase to $50 billion from $10 billion the threshold figure at which regulated depository institutions are subject to direct examination and reporting requirements of the CFPB.
“H.R. 4099 would provide significant regulatory relief to the affected institutions and cause the Bureau to focus directly on the larger institutions and those that were previously unregulated,” said CUNA CEO Jim Nussle in the letter. “While this would not significantly change the number of institutions and percentage of assets presently subject to examination by the Bureau, it would allow the Bureau to more efficiently use its examination resources in the coming years. The number of financial institutions approaching $10 billion in total assets is increasing. As these institutions cross the threshold, the Bureau will be required to spend more of its resources examining these newly covered institutions at the expense of other important consumer protection activities.”
CUNA further stated in its letter that while there are only a small number of credit unions subject to the cap today, it said it also believes raising the cap beyond the asset size ceiling would be important recognition that credit unions “were not the cause or perpetrators of the financial crisis and that credit unions, regardless of size, have a different incentive structure than for-profit financial institutions because they are owned by those they serve.”
The full text of the letter can be found in CUToday.info’s The Gov.