WASHINGTON–Following an executive order earlier this year from President Trump, America’s Credit Unions has sent a 23-page letter to the Office of Management and Budget (OMB) that outlines numerous rules from NCUA and other regulators it wants to see rescinded.
Executive Order 14219—“Ensuring Lawful Governance and Implementing the President’s ‘Department of Government Efficiency’ Deregulatory Initiative—was published in February and is designed to “commence the deconstruction of the overbearing and burdensome administrative state,: according to the order.
America’s Credit Unions noted Executive Order 14219 directs agencies to identify regulations that are “unconstitutional or premised on unlawful delegations, which extend beyond the best reading of their statutory authority, or that address major issues without clear Congressional authorization.”
The letter sent to the OMB—which at one point was headed by Jim Nussle, who currently is president and CEO of America’s Credit Unions—was signed by James Akin, head of regulatory advocacy with the trade group.
Among the rules America’s Credit Unions wants to see rescinded:
NCUA’s Succession Planning Rule
America’s Credit Unions said the rule “conflicts with the EO because its private costs exceed any demonstrated public benefit and it burdens small businesses in unforeseen ways.”
NCUA’s Record Retention Rule
The trade group said the Record Retention rules are “overly prescriptive and outdated, especially for smaller credit unions,” and have “…translated into burdensome retention of a vast array of documents and data, often for indeterminate periods, out of caution…”
NCUA’s Supervisory Committee Audit Requirements
Americas Credit Unions said the rule goes beyond “fundamental financial statement audits,” and have developed over time into a “de facto checklist akin to a full-scope examination…” that for many smaller CUs are “nearly as costly as obtaining a CPA’s audit—effectively negating the relief that an alternative was supposed to provide.”
Other NCUA Rules/Regulations
Other NCUA rules and regulations America’s CUs wants to see rescinded include:
- Federal CU Occupancy and Disposal of Acquired and Abandoned Premises
- Loan Participation Caps
- Cyber-Incident Reporting Rule
CFPB Rules
America’s Credit Unions addressed a number of CFPB rules it wants to see rescinded, including:
CFPB’s Open Banking Rule
The letter says the open banking rule “conflicts with multiple criteria warranting rescission: as statue says nothing about ‘creating an API environment subsidized by data providers.”
America’s Credit Unions said it is seeking a re-write of this rule.
CFPB’s Small Business Lending Data Collection Rule Under Section 1071 of Dodd-Frank
America’s Credit Unions said “the final rule will require covered credit unions to overhaul their application systems, retrain staff, and ensure strict firewalls between loan officers and the new data.”
Additional Requests
America’s Credit Unions has outlined numerous other rules from the CFPB, the Federal Reserve, the Small Business Administration, the FCC and more that it also wants to see rescinded.
The full letter can be found here.
