The legislative and regulatory battles looming for the Consumer Financial Protection Bureau continue. The vast majority of United States senators have penned a letter urging the CFPB to let community banks and credit unions live free from additional regulations.
The Senate action comes several months after the House of Representatives voted for similar exemptions. The latest salvo, sent directly to Director Richard Cordray, said that the agency has leeway over certain exemptions, using the Dodd-Frank Act as its standard.
“We request that the CFPB carefully tailor its regulations to match the unique nature of community banks and credit unions,” the letter stated. American Banker reported that there was not much additional detail, such as which rulemakings are to be examined, yet the publication cited mortgage underwriting and remittances across borders as having drawn fire in past months. The plea joins a long line of similar pleas that have asked for financial institution exclusions to varying degrees.
Cordray has, in turn, stated that credit unions and other institutions are indeed within the jurisdiction of such rulemaking. As has been noted, the bureau has the ability to grant exemptions on a rule-by-rule basis. Smaller institutions, said the newswire, have said that they played no direct role in the financial collapse that sparked in 2008, but authorities have said that credit unions and the like are indeed fair game for oversight.