Credit unions with more than $10 billion in assets, and those rapidly approaching that size, may not have to be directly supervised by the CFPB.
Senators Pat Toomey (R-Pa.) and Joe Donnelly (D-Ind.) introduced the “Consumer Financial Protection Bureau Examination and Reporting Threshold Act of 2014” on Thursday.
If passed and signed into law, the legislation would increase “the threshold figure at which regulated depository institutions are subject to direct examination and reporting requirements of the Bureau of Consumer Financial Protection, and for other purposes,” according to the text of the bill provided to CU Times by Sen. Toomey's office.
The threshold would be raised from the existing $10 billion to $50 billion, which means only the $60 billion Navy Federal Credit Union would continue to be directly supervised by the CFPB.
“Senator Donnelly thinks it is important to ensure that local banks and credit unions are not unduly burdened by a regulatory structure intended to address the bad behavior of the large financial institutions at the center of the financial crisis. He looks forward to working with Senator Toomey to build support for their bipartisan legislation,” Elizabeth Shappell, communications director for Sen. Donnelly, told CU Times.
John McKechnie, partner at Washington advocacy firm Total Spectrum and former NCUA official, said there is a real opening to push the bill in the waning days of the 113th Congress.
“This is practical, achievable regulatory relief—there's bi-partisan support, and CFPB Director Cordray indicated at a hearing that he didn't have a problem with raising the threshold. Credit unions of all sizes can and should get behind this effort,” McKechnie said.
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