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NAFCU President and CEO Dan Berger touted the economic benefits that credit union regulatory relief would create in a letter Thursday to the chairman and ranking member of the Senate Banking Committee.

Berger responded to the committee's call for ideas and proposals on fostering economic growth by highlighting the vital role credit unions play in the economy and the urgency of granting them more flexibility.

"Credit unions play an essential and vital role in the economic health of local economies," Berger wrote to Chairman Mike Crapo, R-Idaho, and Ranking Member Sherrod Brown, D-Ohio. "This was demonstrated during the recent financial crisis when credit unions were able to continue to lend and help creditworthy consumers and small businesses during difficult times, often when no one else would.

"Despite the fact that credit unions played no part in causing the financial crisis, they are still heavily regulated and affected by many of the regulations that have come from it," Berger continued. "Unfortunately, every credit union dollar spent on compliance with regulatory burdens is a dollar that can't be used to help consumers through member service, better rates or additional money to lend."

Berger detailed eight broad areas of regulatory relief that would enable credit unions to help jump-start economic growth and proposed specific statutory revisions to facilitate that.

Berger emphasized the need for the CFPB to grant credit unions relief under the Dodd-Frank Act's Section 1022 exemption authority and urged that authority be strengthened by directly clarifying the CFPB's ability to exempt credit unions. He also touted the importance of "common-sense improvements" to the bureau, including changing the single-director structure to a five-member commission appointed by the president and raising the current CFPB supervision threshold to $150 billion.

In addition, he said the CFPB must better tailor regulations and provide greater clarity on regulation of unfair, deceptive or abusive acts and practices (UDAAP). Additionally, he noted the need for greater review of CFPB regulations. He stressed how providing relief from a long list of other CFPB regulations could help credit unions foster economic growth.

Regarding other areas of potential regulatory relief, Berger urged the repeal of the Durbin interchange amendment, more flexibility for credit unions to add underserved areas to their fields of membership, capital reform, and, among other things, parity for credit unions in the treatment of residential loans to provide relief from the member business lending cap.