Echoing a message often delivered by President-elect Donald Trump in his days on the campaign trail, the Credit Union National Association is calling on the Consumer Financial Protection Bureau to freeze any new or pending regulations at least until Trump takes office.
Throughout his campaign, one of Trump’s main talking points was a freeze and a reduction of federal regulations. Trump noted the impact that the current regulatory environment has on homebuilders during an August appearance before the National Association of Home Builders.
“What’s happening with regulations is horrible. You’re being driven wild with regulations,” Trump told the homebuilders in August.
“In the last five years, regulations on homebuilding have increased 29%,” Trump said. “I was told this stat. I couldn’t even believe it. Twenty-five percent of your total cost to build a house is in regulations – your leader told me that. I couldn’t even believe it.”
Trump told the crowd the government would enact a moratorium on new regulations if he won.
“There’s no industry, other than probably the energy industry, that is more overregulated than the housing industry,” Trump said. “Twenty-five percent of costs to build a house are regulations. I think we should get that down to 2%.”
Trump’s transition team has already begun discussing plans to “dismantle” the Dodd-Frank Wall Street Reform Act, as well as enacting “a temporary moratorium on all new regulation.”
And CUNA, a trade association that represents credit unions, wants that moratorium to begin right now at the CFPB.
“On behalf of America’s credit unions, I am writing to urge the Consumer Financial Protection Bureau to impose an immediate moratorium on all of its pending and future rulemakings, other than those providing corrective regulatory relief,” CUNA President and CEO Jim Nussle said in a letter to CFPB Director Richard Cordray.
“This week, American voters delivered an important message: they do not feel their voice is being heard by federal policymakers and they want that to change,” Nussle continued.
“Many of these consumers continue to face financial challenges in their everyday life and are seeking solutions for their financial needs,” Nussle added. “Policies coming out of Washington that limit consumers' ability to obtain safe credit, or make it difficult and more expensive to access products and services from their community financial institution such as their credit union, are not making their lives better.”
In Nussle’s words, “unnecessary, overly burdensome, and duplicative” regulations are preventing some consumers from being able access credit and other services that credit unions can provide.
“Too many resources credit unions would otherwise apply to more fully serving their members are spent on complying with broad sweeping rules that should instead be focused on those abusing consumers,” Nussle said.
“Unfortunately, CFPB rulemakings on mortgage reporting, underwriting and servicing, remittances, and other already consumer friendly credit union financial products has stifled credit unions’ ability to effectively and efficiently serve their members,” Nussle added.
“In particular, these rules have impeded credit unions’ ability to serve members with lower credit scores, or those facing financial difficulties,” Nussle concluded. “In light of this and the upcoming change in administration, we urge the Bureau to cease its pending rulemaking affecting credit unions.”