Newsroom
July 12, 2016
NAFCU shares 'CHOICE Act' thoughts with Hensarling, committee
NAFCU's Carrie Hunt thanked the House Financial Services Committee for its attention to regulatory reform and highlighted the association's initial thoughts on the "Financial CHOICE Act," which is being discussed by the committee today.
The committee will examine some of the proposals in the "Financial CHOICE Act," draft legislation that would be an alternative to the Dodd-Frank Act and is authored by committee Chairman Jeb Hensarling, R-Texas. The draft includes a NAFCU-supported repeal of the Durbin amendment and contemplates relief for well-capitalized institutions from certain regulatory restrictions imposed by functional regulators, among other things.
Hunt, NAFCU's executive vice president of government affairs and general counsel, said the uniqueness of credit unions should be reflected in their regulatory regime and noted the association's support for the "Credit Union Risk-Based Capital Study Act of 2015" (H.R. 2769). "The Dodd-Frank ‘off-ramp' proposed in Title I of the discussion draft is a novel approach to tackling this issue," she wrote.
"NAFCU believes that this proposal deserves careful and thorough examination to ensure the capital requirements in the ‘off-ramp' can work for various types of financial institutions, including whether one level fits all institutions, or if 10 percent is the proper level for credit unions," she added.
In Monday's letter to Hensarling and Ranking Member Maxine Waters, D-Calif., Hunt said the country has lost 1,499 federally insured credit unions since the second quarter of 2010 due to growing regulatory compliance burdens. She cited the crush of rules from CFPB under the Dodd-Frank Act as a key contributor to that burden.
Hunt reiterated that NAFCU was the only credit union trade association to oppose subjecting credit unions to CFPB authority under Dodd-Frank, and the association maintains that CFPB has the authority – and should be using that authority – to exempt credit unions from regulations aimed at bad actors.
Hunt's letter was also sent to all members of the committee.
The committee will examine some of the proposals in the "Financial CHOICE Act," draft legislation that would be an alternative to the Dodd-Frank Act and is authored by committee Chairman Jeb Hensarling, R-Texas. The draft includes a NAFCU-supported repeal of the Durbin amendment and contemplates relief for well-capitalized institutions from certain regulatory restrictions imposed by functional regulators, among other things.
Hunt, NAFCU's executive vice president of government affairs and general counsel, said the uniqueness of credit unions should be reflected in their regulatory regime and noted the association's support for the "Credit Union Risk-Based Capital Study Act of 2015" (H.R. 2769). "The Dodd-Frank ‘off-ramp' proposed in Title I of the discussion draft is a novel approach to tackling this issue," she wrote.
"NAFCU believes that this proposal deserves careful and thorough examination to ensure the capital requirements in the ‘off-ramp' can work for various types of financial institutions, including whether one level fits all institutions, or if 10 percent is the proper level for credit unions," she added.
In Monday's letter to Hensarling and Ranking Member Maxine Waters, D-Calif., Hunt said the country has lost 1,499 federally insured credit unions since the second quarter of 2010 due to growing regulatory compliance burdens. She cited the crush of rules from CFPB under the Dodd-Frank Act as a key contributor to that burden.
Hunt reiterated that NAFCU was the only credit union trade association to oppose subjecting credit unions to CFPB authority under Dodd-Frank, and the association maintains that CFPB has the authority – and should be using that authority – to exempt credit unions from regulations aimed at bad actors.
Hunt's letter was also sent to all members of the committee.
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