WASHINGTON—NAFCU Wednesday applauded the House Financial Services Committee’s passage of HR 2896, a bill that would bring regulatory relief to smaller financial institutions.
HR 2896, the Taking Account of Institutions with Low Operation Risk (TAILOR) Act, seeks to ensure regulators like NCUA and CFPB do not use a one-size-fits-all approach to rulemaking. The bill, introduced last year by committee members Scott Tipton (R-CO) and Andy Barr (R-KY)—and cosponsored by committee member Rep. Ed Perlmutter (D-CO)—would provide regulatory relief to smaller community banks and credit unions by requiring federal regulators to tailor their rulemaking to fit the institutions’ business models and risk profiles.
The bill, supported by NAFCU and CUNA, would also require NCUA and CFPB to testify annually before the House Financial Services and Senate Banking Committees on specific actions taken to comply with the measure.
“We thank Representatives Tipton, Barr and Perlmutter for their leadership on this measure and their attention to the overwhelming regulatory burden facing today’s credit unions,” said NAFCU) Vice President of Legislative Affairs Brad Thaler. “We look forward to continuing to work with Congress to help advance this critical legislation.”
In a letter to committee leaders Tuesday urging support of the bill, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt said the bill would require NCUA, and other regulators, “to consider the aggregate impact a new rule will have along with existing regulations.”
“As you are aware, many regulations are promulgated without this consideration, resulting in the current regulatory environment where smaller institutions are unable to keep up with the onslaught of regulations in the wake of the Dodd-Frank Act,” Hunt noted.