The Dodd-Frank overhaul being pushed by House Financial Services Chairman Jeb Hensarling (R-Texas) should exempt credit unions from CFPB rulemaking, NAFCU President/CEO B. Dan Berger said Tuesday.
“While there are credible arguments to be made for the existence of the CFPB, its primary focus should be on regulating the unregulated bad actors, not adding new regulatory burdens to good actors, like credit unions, that already fall under a prudential regulator,” Berger said in a letter to leaders of the House committee in which he analyzed Hensarling’s plan.
The committee held a hearing on the bill Wednesday morning.
Berger said there is an urgent need to enact regulatory relief, saying that many smaller institutions cannot keep up with the new “regulatory tide” and have been forced to merge or close.
He also endorsed Hensarling’s plan to convert the CFPB into a consumer law enforcement agency without supervision, but added that the agency should be governed by a commission rather than a single director.
Hensarling originally proposed a commission structure, but his latest version would retain the single director.
Berger said repealing the Durbin Amendment on interchange fees is one of the most important parts of the bill, and he urged Hensarling to ensure it is included throughout the legislative process.
Retailers have said they will fight to retain the Durbin Amendment and that its repeal could endanger any effort to enact any Dodd-Frank overhaul.
Berger applauded Hensarling’s proposal to retain the three-member structure of the NCUA board, but said moving the agency under the congressional appropriations process is unnecessary since credit unions fund the agency.
Berger also endorsed Hensarling’s plan to require agencies to conduct cost-benefit analyses before issuing rules.
Berger also said that credit unions should be able to pursue “healthy” fields of membership that are not limited by outdated rules or regulations.
