WASHINGTON–The Senate today will hold a hearing titled “Assessing The Effects Of Consumer Finance Regulations,” and both NAFCU and CUNA will be closely following the proceedings.
Scheduled to appear and provide testimony are Leonard Chanin of Morrison & Foerster, the author of CUNA’s legal opinion on the CFPB’s statutory exemption authority; Todd Zywicki, professor of law at George Mason University School of Law; and David Hirschmann, president and CEO of the U.S. Chamber of Commerce Center for Capital Markets Competitiveness.
“We are looking forward to that hearing,” said CUNAs Ryan Donovan. “And we will take the opportunity this hearing presents to formally deliver our regulatory burden study to the Committee and encourage its members to ask panelists about ways to reduce the regulatory burden on credit unions.”
Commissioned by CUNA, a recent study from Cornerstone Advisors found that collectively, credit unions each year face a $7.2-billion price tag to address regulation.
Before the CFPB’s hearing on Thursday, the Senate Banking Committee will vote on two nominations: that of Amias Gerety to the post of Treasury assistant secretary of financial institutions; and that of Jay Lerner to be FDIC’s inspector general. Also awaiting action from the Committee is the president’s nomination of NCUA Board Member Mark McWatters to the board of the Export-Import Bank.
In advance of the hearing, NAFCU sent a letter to the Committee that, among many points, emphasized how the mounting regulatory burden is leading to CUs exiting the industry in large numbers.
“The overwhelmingly negative impact of the tsunami of consumer financial regulations on credit unions is undeniable. Since the second quarter of 2010, we have lost 1,200 federally-insured credit unions, 96% of which were smaller institutions below $100 million in assets,” NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt told CUToday.info. “Despite being widely recognized for not causing the financial crisis and for their prudent business model, credit unions are paying a high price for Wall Street antics. Credit unions critically need regulatory relief so they can continue to provide the low-cost, competitive rate products and exceptional service to their more than 102 million members.”
NAFCU's complete letter can be found in CUToday.info's The gov.