The CFPB has complied with Dodd-Frank’s requirements that the bureau take into account the impact its rules will have on small businesses, the Government Accountability Office reported Wednesday.
“The Consumer Financial Protection Bureau has taken steps to solicit, consider and incorporate inputs from small entities into its rulemaking process, as required by federal law,” the GAO said.
Credit union officials have said they believe the CFPB has done a poor job of taking small businesses into account when tailoring rules.
However, the Obama Administration’s Council of Economic Advisers said this week that community banks have thrived under Dodd-Frank.
The GAO said the CFPB complied with the law’s requirement that Small Business Review Panels be convened before final rules are issued.
And while many participants on those panels said they were unhappy with the final rules, the GAO said participants’ objections generally were made public. Some alternative rules proposed by panel members were included in a “significant alternatives” section of the proposed rules.
In its report, the GAO examined four mortgage rules that the agency issued and interviewed participants.
For instance, 57 of the participants on one panel said they generally believed the process was useful, but that it could be improved. And while 36 of the 57 said the CFPB at least partially considered their views, most said they were not happy with the final rules.
In response, the GAO said, the CFPB said the rules were required under Dodd-Frank.
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