April 11, 2014

Coats bill would modify CFPB info requests

April 14, 2014 – Sen. Dan Coats, R-Ind., introduced S. 2242 last week to modify how the CFPB requests information from institutions with less than $10 billion in assets.

In the legislation, Coats notes that the profitability and survival of credit unions and community banks has been threatened by the rise in compliance costs since the financial crisis. He also quotes a member of the Federal Reserve Board, stating, "Community bankers, who played no part in causing the financial crisis, have been forced to fight to ensure that they are not swept up in the torrent of costly new regulations."

The bill would specifically require the CFPB to request information through prudential regulators and to use existing publicly available information prior to requesting any information through the prudential regulators. It would also require the CFPB to give justification for why it needs that information and allow the prudential regulators to deny the requests.

Finally, it would restrict the bureau to information requests that are institution-specific, and not industrywide information.