(R-Idaho) has introduced a bill that would make the Consumer Financial Protection Bureau (CFPB) subject to new a regulatory process. The legislation would make the CFPB eligible for review under the 10-year regulatory review. Under the current regulation, both the CFPB and Dodd-Frank are exempt from review.
Regulators have moved to the second of phase of their review under the 1996 Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA), which identifies outdated, unnecessary or unduly burdensome rules. However, critics argue that the review plan may leave out Dodd-Frank rules.
“Rather than predetermine which rules should or should not be reviewed, this legislation will require the federal financial regulators to review all existing regulations, including Dodd-Frank and CFPB rules” Crapo said. “Crushed under an ever-increasing regulatory burden, this review is only meaningful if we identify the biggest challenges for community banks and credit unions and provide real solutions.”
Specifically, the proposed legislation would list each agency that is a member of the Federal Financial Institutions Examination Council separately – CFPB, National Credit Union Administration (NCUA), Office of the Comptroller Currency, Federal Deposit Insurance Corporation and Federal Reserve to ensure that CFPB and NCUA are mandated to take part in the EGRPRA review process.
It would also include rulemakings under Dodd-Frank and expand the review by broadening the requirement to apply to financial institutions in general as opposed to just insured depository institutions.