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HR 3048 Community Financial Institution Exemption Act Closes Session with 46 Cosponsors
Monday, January 9, 2017 7:05 AM

Congressman Roger Williams (R-Texas) filed H.R. 3048, the Community Financial Institution Exemption Act the summer of 2015. The bill required the Consumer Financial Protection Bureau to exempt credit unions and community banks under $10 billion in total assets from the rules and regulations of the CFPB going forward, unless the CFPB issued a report that an exempt group of financial institutions had engaged in a pattern or practice of activities that were detrimental to the interests of consumers.

"We thank Congressman Williams for his efforts to bring relief to credit unions and community banks, and the need to address this extremely important issue," said Dick Ensweiler, president of the Cornerstone Credit Union League.

Section 1022 of Dodd-Frank Wall Street Reform and Consumer Protection, which authorized the creation of the CFPB, gave the regulator authority to exempt institutions, but the CFPB has rarely used it. 

HR 3048 would have shifted the burden to the regulator to demonstrate a need to impose the regulations. 

"The bill would force the CFPB to explain to community banks and credit unions why they are not exempt from certain CFPB rules and regulations as permitted in the Dodd-Frank Wall Street Reform and Consumer Protection Act," said Williams. "For the last five years, Main Street American lenders have had to close up shop because they are incapable of spending more time, money, and resources complying with costly federal regulations. These institutions are vital to the success of the small business community, and we need to make sure they are guaranteed the protections they are granted under the law."

"We look forward to working with Congressman Williams to reintroduce the Community Financial Institution Exemption Act as soon as possible in this new Congress," said Jeff Huffman, president of the Texas Credit Union Association. "Meaningful regulatory relief is a priority of House Financial Services Committee Chairman Jeb Hensarling (R-Texas), and we intend to support his efforts to reduce the one-size-fits-all regulatory approach that credit unions have been laboring under." 

With regulatory relief a focus of the incoming administration, now is the time for credit unions to let lawmakers know that a functioning exemption for CU's from CFPB regulations is essential. Credit Unions should write their congressional lawmakers urging support for the inclusion of the Community Financial Institution Exemption Act in Chairman Hensarlings' "Choice Act" when he introduces it this year.

As Congress closed the session in 2016, HR 3048 had the bi-partisan support of 46 House members as co-sponsors, including the full delegations of Arkansas and Oklahoma and 19 of Texas’ 36 members.

From the Cornerstone Credit Union League states, cosponsors included:

Rep. Eric A. "Rick" Crawford (R-Ark.)
Rep. French Hill (R-Ark.)
Rep. Bruce Westerman (R-Ark.)
Rep. Steve Womack (R-Ark.) 

Rep. Jim Bridenstine (R-Okla.)
Rep. Tom Cole (R-Okla.)
Rep. Frank D. Lucas (R-Okla.)
Rep. Markwayne Mullin (R-Okla.)
Rep. Steve Russell (R-Okla.) 

Rep. Brian Babin (R-Texas)
Rep. Kevin Brady (R-Texas)
Rep. John R. Carter (R-Texas)
Rep. K. Michael Conaway (R-Texas)
Rep. Henry Cuellar (D-Texas)
Rep. John Abney Culberson (R-Texas)
Rep. Bill Flores (R-Texas) 
Rep. Louie Gohmert (R-Texas)
Rep. Kay Granger (R-Texas)
Rep. Gene Green (D-Texas)
Rep. Will Hurd (R-Texas)
Rep. Kenny Marchant (R-Texas) 
Rep. Pete Olson (R-Texas) 
Rep. Ted Poe (R-Texas)
Rep. John Ratcliffe (R-Texas)
Rep. Pete Sessions (R-Texas)
Rep. Lamar Smith (R-Texas)
Rep. Filemon Vela (D-Texas)
Rep. Randy Weber (R-Texas) 

Other States:
Rep. Scott R. Tipton (R-Colo.)
Rep. Bill Posey (R-Fla.)
Rep. Dennis A. Ross (R-Fla.)
Rep. Lynn A. Westmoreland (R-Ga.)
Rep. Lynn Jenkins (R-Kan.)
Rep. Andy Barr (R-Ky.)
Rep. Tom Emmer (R-Minn.)
Rep. Blaine Luetkemeyer (R-Mo.)
Rep. Frank C. Guinta (R-N.H.)
Rep. Stevan Pearce (R-N.M.)
Rep. Peter T. King (R-N.Y.) 
Rep. Tom Reed (R-N.Y.)
Rep. Walter B. Jones, Jr. (R-N.C.)
Rep. Robert Pittenger (R-N.C.)
Rep. Steve Stivers (R-Ohio)
Rep. Mia B. Love (R-Utah)
Rep. David B. McKinley (R-W.Va.)
Rep. Glenn Grothman (R-Wis.) 

For more information, please contact Texas Credit Union Association President Jeff Huffman at 469-385-6488 or