Members of the House Financial Services Committee expressed many questions about the one-size-fits-all regulatory climate under the Dodd-Frank Act, as well as the effect on consumers and community financial institutions Wednesday during a hearing on the Financial CHOICE Act. Details on the Financial CHOICE Act were made public last week by Rep. Jeb Hensarling (R-Texas), the committee chair, and contains some positive and negative provisions for credit unions.

CUNA wrote a letter for the record of the hearing, outlining the positive aspects of the bill, listing the concerns and proposing a number of changes that President/CEO Jim Nussle said would help credit unions more fully serve their members.

Rep. Ed Royce (R-Calif.) said the effect of Dodd-Frank burdens means “the smaller the institution, the greater the disadvantage,” which is a problem he said he hopes is remedied.

Royce introduced a bill in January, along with Reps. Jared Huffman (D-Calif.), Don Young (R-Alaska) and Peter DeFazio (D-Ore.), that would exempt loans made for the purchase of non-owner occupied, 1-4 unit dwellings from a credit union’s member business lending cap.

 

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