WASHINGTON—The BCFP is being urged to "fully utilize" its exemption authority and make greater use of advance notice of proposed rulemakings (ANPRs).
NAFCU and CUNA made those requests, respectively, to the BCFP last week in response to the Bureau’s request for information on its rulemaking process.
NAFCU, in a letter to the Bureau, encouraged the agency to make greater use of its exemption authority under the Dodd-Frank Act to "exempt credit unions from future Bureau rules designed to address the abuses of bad actors or activities conducted by the largest and riskiest of financial institutions."
"NAFCU would like to reiterate our longstanding position that regulatory burden is the top challenge facing credit unions of all sizes today," wrote NAFCU Regulatory Affairs Counsel Andrew Morris. "While smaller credit unions continue to disappear due to this growing burden, all credit unions find the current environment challenging. NAFCU and our members firmly believe that exempting credit unions from rulemakings intended for larger financial institutions would result in significant, immediate regulatory relief that would allow credit unions to better serve their members."
Other Recommendations
In addition to employing its exemption authority in its rulemaking processes, Morris also recommended the Bureau:
- Allow stakeholders to comment on agency research that accompanies a rule, noting issues with research that accompanied the now-rescinded arbitration rule
- Collect industry feedback and data through existing external engagement channels, such as the Credit Union Advisory Council (as CUToday.info reported, the Bureau earlier last week announced it would reform its advisory councils)
- Enhance the accessibility of the its notices of proposed rulemakings by incorporating indexes, executive summaries and examples to help stakeholders review and better understand the proposals
Morris also provided recommendations related to the Bureau's consultation of Small Business Regulatory Enforcement Act (SBREFA) panels, including: conduct preliminary outreach to collect more feedback from small entities; provide more time for credit unions and others to consider proposals before convening a formal SBREFA panel; integrate more SBREFA panel recommendations into future rulemakings; and ensure sensitive information is protected during the SBREFA review process.
CUNA’s Input
CUNA shared its perspectives by sending the Bureauanother copy of its “White Paper on Common-Sense Reforms.”
“As future Bureau rules, including the small business lending rule, lack a statutorily required or set implementation timeline, we strongly urge the Bureau to employ greater use of ANPRs rather than only using the Notice of Proposed Rulemaking (NPR) process,” the white paper reads. “An illustrative example of rulemaking that would have benefited from more external stakeholder engagement before moving forward is the Bureau’s payday and small dollar lending rule.”
CUNA’s white paper, which can be found in CUToday.info’s The Vault, also recommends the Bureau:
- Ensure its Small Business Regulatory Enforcement Fairness Act (SBREFA) process is efficient and effective moving forward, and that the Bureau gives adequate weight and consideration to the expert input obtained during SBREFA panels. This includes:
- Ensuring small entity representatives (SERs) receive prep materials well in advance
- Conducting pre SBREFA panel calls with SERs
- Thoroughly considering SER comments before proposing rules
- Ensuring SERs receive the final SBREFA report before it is published as part of a proposal
- Work with NCUA, which understands the credit union structure and business model, and should be engaged throughout a rulemaking process
- Rely on data, including cost-benefit analysis, as a foundation of rulemaking. The Bureau should also ensure the public has access to the same information
- Coordinate with states with ensure enforcement is transparent and consistent