WASHINGTON—One-size-fits-all regulation robs consumers of lending options, CUNA told the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit Tuesday.
In a letter to the Committee leaders Blaine Luetkemeyer (R-MO) and ranking member William “Lacy” Clay (D-MO), CUNA noted how the trade association recently surveyed its members to measure the impact of how lenders are responding to new requirements.
Wall Street banks can afford to comply with these rules and their contribution to overall loan growth will mask slower loan growth or lending contraction by smaller lenders, noted CUNA President and CEO Jim Nussle.
“We have encouraged the CFPB to use its existing exemption authority to shield smaller and less complex financial institutions lenders from the most onerous requirements of its new regulations; however, the CFPB has not used its exemption authority effectively,” wrote Nussle. “CUNA’s member survey found that credit unions are forced to make difficult decisions to reduce or abandon offerings, which can be a consumers' safest and most affordable option, to protect the resources of the membership as a whole. For smaller and less complex financial institutions, complex rules mean they are spending more time on compliance and less time innovating and working with members.”