For instance, the legislation will include language intended to make the examination process more transparent and require the NCUA and other agencies to consider the size and risk of financial institutions when writing rules.

"Simply put, Dodd-Frank has failed," Hensarling (pictured) said in a speech before the New York Economic Club. "It's time for a new legislative paradigm in banking and capital markets. It's time to offer all Americans opportunities to raise their standards of living and achieve financial independence."

He added, "It wasn't de-regulation that caused the financial crisis; it was dumb regulation."

Hensarling said his goal is to provide relief to community financial institutions that "are being crushed by Washington's 'one-size-fits all' regulatory regime."

Hensarling's plan would also give well-capitalized banks additional regulatory relief.

The proposal would require the timely release of exam reports, creates a mechanism for institutions to appeal findings without fear of bureaucratic retaliation, and creates an 18-month exam cycle for certain credit unions.

The NCUA began an examination of that cycle and the call report process, and Chairman Rick Metsger has said the agency may extend the exam cycle for certain credit unions.

Hensarling said converting the CFPB, Federal Housing Finance Agency and Office of the Comptroller of the Currency into commissions would make the agencies more accountable.

"A bipartisan structure will compel these agencies to consider multiple viewpoints and perspectives in their rule-makings and protect them from partisanship," he said.

The plan would also allow credit unions to treat mortgages held in portfolio as Qualified Mortgages when the CFPB applies its mortgage lending regulations.

The legislation would repeal the CFPB's ability to ban bank products it deems abusive and its authority to ban arbitration.

In recent weeks, the agency has proposed banning a large segment of so-called payday loans and proposed restricting mandatory arbitration agreements found in many contracts.

The plan to convert the CFPB into a commission was contained in last year's House version of the Financial Appropriations bill. The Senate version did not include that plan and it was not included in the final legislation. This year's House bill includes such a proposal.

Specific legislative language has not yet been released.

Credit union trade groups praised Hensarling's plan, stating that it would provide much-needed regulatory relief.

"We appreciate Chairman Hensarling's provisions that tackle some of the regulatory burdens shouldered by Main Street, community financial institutions – especially the consideration it gives to credit unions' supervisory concerns," CUNA Chief Advocacy Officer Ryan Donovan said.

"NAFCU and our members greatly appreciate Chairman Hensarling's thoughtful leadership in creating a plan to correct a regulatory pendulum that has swung too far," NAFCU President/CEO Dan Berger said. "Lawmakers and regulators have widely recognized credit unions for their prudent business model and for not creating the crisis."