NAFCU expresses support for reg relief bills to help FCUs
NAFCU Vice President of Legislative Affairs Brad Thaler
Nov. 4, 2013 – NAFCU Vice President of Legislative Affairs Brad Thaler on Tuesday praised the goals of a House Financial Services subcommittee’s discussion draft on regulatory relief legislation and offered suggested improvements, including the addition of a cost-benefit analysis of new rules.
Thaler thanked subcommittee Chairman Shelley Moore Capito, R-W. Va., and Ranking Member Gregory Meeks, D-N.Y., for holding a hearing today, “Examining Regulatory Relief Proposals for Community Financial Institutions,” during which a bipartisan discussion draft on ways to reduce conflicting or redundant laws and regulations will be discussed. The hearing is being held by the House Financial Services Subcommittee on Financial Institutions and Consumer Credit.
“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 legislation that would make sure “rural” designations for qualified mortgages would be made fairly – the “CFPB Rural Designation Petition and Correction Act,” H.R. 2672, from Rep. Andy Barr, R-Ky.
“As you know, NAFCU has serious concerns about several aspects of the QM definition including the way in which points and fees are calculated,” Thaler said. “Representative Barr’s bill is a positive step forward in addressing outstanding issues related to QMs. With the QM rule set to take effect next month, we would also urge the subcommittee to act in a timely manner on other QM fixes pending before it, such as the bipartisan ‘Mortgage Choice Act of 2013’ (H.R. 3211).”
Witnesses scheduled to testify at the hearing include 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).