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Hensarling Redrafts Dodd-Frank Reforms
Wednesday, April 12, 2017 6:20 AM

A draft of the revised Financial CHOICE Act was circulated Tuesday by House Financial Services Committee Chairman Jeb Hensarling (R-Texas) to committee members. The revised draft would repeal the Durbin interchange amendment and implement other reforms of the Dodd-Frank Act.

The draft would leave NCUA's board structure intact, repeal the Durbin amendment, and rein in several of the CFPB's authorities and practices of most concern to credit unions, including its authority to address unfair, deceptive, or abusive acts and practices (UDAAP).

Key provisions of concern to credit unions would:

  • Preserve the NCUA Board's current three-member structure;
  • Retain a single director for the leadership structure of the CFPB, making that position subject to removal by the president at will;
  • Eliminate the CFPB's supervisory authorities, leaving it with enforcement authority only with respect to enumerated consumer protection laws;
  • Eliminate any CFPB authority with respect to UDAAP; and
  • End the CFPB's publication of its consumer complaint database.

Because the NCUA has already expanded exam cycles to 18 months for well-run credit unions under $1 billion in assets, Hensarling has removed a corresponding mandate from his draft CHOICE Act. The draft also would make Dodd-Frank Act-mandated offices within the CFPB and mandated advisory councils optional, at the director's discretion.

The draft is expected to be introduced before month end.

Congress is in recess, with House members in their home districts until April 24 and senators in their home states until April 23.