WASHINGTON (7/24/12)--As rules emanating from the Dodd-Frank Wall Street Reform and Consumer Protection Act continue to be proposed and finalized, compliance burdens will mount against smaller financial institutions, such as credit unions, the Credit Union National Association (CUNA) warned federal lawmakers Thursday.
In a letter submitted for the record of a hearing by the House Financial Services subcommittee on oversight and investigation on the impact of the Dodd-Frank Act, CUNA President/CEO Bill Cheney wrote, "Congress should continue its prudent oversight of regulatory agencies as they continue to propose and finalize rules coming out of the Dodd-Frank Act and keep a keen eye on the cost of compliance and growing regulatory burden for smaller financial institutions, such as credit unions, that were not a party to the financial crisis.
"We served our members through the financial crisis and continue to do so in its aftermath."
The CUNA letter also focused on several specific regulatory issues. Regarding:
- The Consumer Financial Protection Bureau's (CFPB) statutory authority to exempt certain entities from a number of rules being developed by the agency, CUNA expressed concern that the CFPB is not doing enough to extend relief to credit unions and others from certain compliance responsibilities.
- A Dodd-Frank imposed rule to regulate remittance transfers, CUNA said the current plan to exempt credit unions and other issuers who do fewer than 25 transactions per year should be increased to exempt those who do no more than 1,000 remittance transfers per year, to provide compliance relief to more small providers;
- A new definition for qualified mortgages, which will determine proper underwriting standards for borrowers, CUNA backed the CFPB's plan to delay action until after the November elections. CUNA also offered comments regarding specific provisions of the proposal that address a safe harbor alternative, prepayment penalties, lower documentation qualified mortgages, Balloon Payment Qualified Mortgages for lenders in rural and underserved areas, and a delayed compliance date.
Use the link to read CUNA's complete letter.