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Rep. Williams Presses for Relief from CFPB Rules in Appropriations Bill
Thursday, March 30, 2017 7:00 AM

Congressman Roger Williams (R-Texas), author of the Community Financial Institution Exemption Act, HR 1264, and 16 other members of Congress sent a letter to the chairman of the U.S. House Committee on Appropriations’ Financial Services and General Government Subcommittee, Rep. Tom Graves (R-Georgia), and ranking member Rep. Mike Quigley (D-Illinois) requesting that regulatory relief for community financial institutions be included in the appropriations bill.

Section 1022 of the Dodd-Frank Act gives the Consumer Financial Protection Bureau explicit authority to exempt small institutions based on size, but it has not used that authority. Williams has been fighting the one-size-fits-all approach to regulations, working to require the CFPB to use its authority and exempt credit unions and community banks from further rules and regulations. Studies have determined that credit unions are paying $7.2 billion in compliance costs, nearly twice the amount of just a few years ago, and are subjected to 6,000 pages of new rules.

In addition to Williams, other congressmen from Cornerstone states signing the letter are Rep. French Hill (R-Ark.), Rep. Brian Babin (R-Texas), and Rep. Jodey Arrington (R-Texas).

“We appreciate Congressman Williams' tireless efforts to bring relief to credit unions and community banks from the CFPB regulations, along with all the members of Congress who signed on to the request letter," said Texas Credit Union Association President Jeff Huffman. "They recognize that more credit unions and community banks provide real consumer protection by giving consumers options when it comes to financial services.”

The letter requests that the appropriations bill include the following language:

The Committee directs the Bureau to report to the Committees on Appropriations of the House and Senate, the Committee on Financial Services of the House and the Committee on Banking, Housing and Urban Affairs of the Senate, within 120 days of enactment of this Act, on how it has used its authority under Section 1022 in rulemakings to exempt certain classes, any plans to revisit to previous rulemakings to more carefully tailor or grant exemptions to rules that have been especially burdensome, and the process for the Bureau to consider exemptions to community institutions in future rulemakings.

The letter can be read here.

If the appropriations committee adds the requested language, it is one more way to try to bring relief to credit unions and community banks from the overwhelming CFPB rules.

For more information, please contact Texas Credit Union Association President Jeff Huffman at 469-385-6488 or jhuffman@txcua.coop.