Newsroom

Dec. 5, 2013 – The leaders of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit expressed concern about credit union overregulation during a hearing Wednesday about their discussion draft on regulatory relief legislation.

Subcommittee Chairman Shelley Moore Capito, R-W.Va., described complaints from small financial institutions about an overwhelming wave of regulation. Ranking Member Gregory Meeks, D-N.Y., affirmed his support for the Dodd-Frank Act but also discussed the importance of preserving community financial institutions through regulatory relief. Both expressed their support for legislation from Rep. Andy Barr, R-Ky., which NAFCU Vice President of Legislative Affairs Brad Thaler touted in a letter on Tuesday.

In his letter, Thaler praised the subcommittee's goals for regulatory relief legislation and offered suggested improvements, including the addition of a cost-benefit analysis of new rules.

"NAFCU supports the goals of this bill and, as outlined in our regulatory relief plan, would support additional steps to ensure that regulators are required to conduct a look-back cost-benefit analysis on all new rules after three years," Thaler wrote. "We believe regulators should be required to revisit and modify any rules for which the cost of complying was underestimated by 20% or more from the original estimate at the time of issuance."

Thaler also noted the importance of Barr's legislation, which would make sure "rural" designations for qualified mortgages would be made fairly.

Witnesses who testified at the hearing – "Examining Regulatory Relief Proposals for Community Financial Institutions" – included the president and CEO of Towpath Credit Union, of Akron, Ohio, (for CUNA) and the assistant vice president of Owingsville Banking Company, of Kentucky (for the American Bankers Association).