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Reps. Roger Williams, R-Texas, and Frank Lucas, R-Okla., have introduced a bill to strengthen the small creditor exemption under CFPB regulations by applying it to all credit unions with assets of less than $10 billion.

NAFCU, the only credit union trade association to oppose CFPB having rulemaking authority over credit unions, views the bill as a "very strong step" in the right direction, said Carrie Hunt, NAFCU's senior vice president of government affairs and general counsel.

In a statement, Hunt said, "We appreciate Representatives Williams' and Lucas' recognition of the importance of this exemption and their efforts to alleviate the already overwhelming regulatory burden for credit unions. When Congress first proposed the CFPB, NAFCU was the only financial services trade association to oppose CFPB having rulemaking authority over any credit union and has always opposed any segmentation of the industry. This bill is a very solid step in the right direction to provide credit unions critically needed regulatory relief."

NAFCU continues to demand an exemption for all credit unions from CFPB rulemakings – not just a segment of credit unions.

The legislation, H.R. 3048, would strengthen the small institution exemption which CFPB has the authority to grant under Section 1022 of the Dodd-Frank Act. The affirmative finding requirement of the bill is to ensure CFPB makes plain whether or not such rules are worth imposing on smaller institutions.

Williams is a member of the House Financial Services Subcommittee on Financial Institutions and Consumer Credit. NAFCU staff met with Williams' staff this week to discuss pressing credit union issues.

In related action this week, NAFCU Vice President of Legislative Affairs Brad Thaler reiterated the need for a credit union exemption from CFPB rules.