Reps Push for CFPB Exemption Authority Language in FSGG Bill

WASHINGTON – Seventeen members of Congress wrote to House appropriators this week requesting language on the Consumer Financial Protection Bureau’s (CFPB) exemption authority be included in the fiscal year 2017 Financial Services and General Government (FSGG) Appropriations bill.

Broadening and clarifying the bureau’s statutory ability under section 1022 of the Dodd-Frank Act to exempt credit unions from certain regulations is a major goal of CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation.

“The CFPB has rarely used section 1022 to make broad exemptions for community financial institutions. When it has, the resulting thresholds have been so low that they have provided little or no relief,” the letter reads. “Last year the Government Accountability Office report concluded that the rules implemented under the Dodd-Frank Act have impacted community banks and credit unions. These institutions, which have cited an ‘increase in compliance burdens,’ have been harmed by the onslaught of new regulations.”

The language the representatives asked to be included in the FSGG bill would call for the CFPB to report to House and Senate appropriations and financial services committees within 120 days on:

  • How it has used its section 1022 authority to exempt certain classes from rulemakings;
  • Any plans to revisit previous rulemakings to more carefully tailor rules or grant exemptions to rules that have been “especially burdensome;”
  • The process for the CFPB to consider exemptions for community institutions in future rulemakings.
in Legislative & Political News