On Tuesday, House Republicans called for the rollback of myriad federal rules and tighter restraints on regulatory agencies, including the NCUA.
The overhaul of the federal government regulatory infrastructure was contained in the House GOP's latest installment of its A Better Way agenda.
“It is time for Congress to take greater responsibility for federal regulations,” the Republicans said.
In the 57-page document, they continued, “Regulatory costs on credit unions have increased by $2.8 billion since Dodd-Frank was adopted, with a disproportionate cost being borne by credit unions with less than $100 million in assets. Many regulations designed for big banks are also applied to small community banks or credit unions, imposing compliance costs that many find unbearable.”
They added smaller institutions do not have a large compliance staff.
The Republicans went on to endorse already introduced legislation that would allow regulators to tailor their rules based on a bank or credit union's size. They also endorsed legislation that would provide financial institutions with greater ability to appeal or oppose exam findings without risking retaliation.
In addition, the Republicans endorsed already introduced legislation that would require the NCUA to publish its budget and hold a hearing on the plan.
The plan also includes many provisions of the Dodd-Frank overhaul unveiled last week by House Financial Services Chairman Jeb Hensarling (R-Texas). Those provisions included making the CFPB subject to annual appropriations and establishing a commission to oversee the agency.
The Republicans also called for legislation that would create an annual regulatory budget for each agency and require agencies to seek approval to exceed their ceiling.
The GOP leadership also promised to unveil legislation that would relieve the fintech community of regulations it identifies as burdensome.
The proposals are unlikely to be enacted into law this year. Many of the proposals remain pending in the House, while some that have passed the House are stalled in the Senate.
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