NCUA, CFPB regulations should be rescinded under ‘deregulation’ EO
An Executive Order focused on “deregulation” provides opportunities to remove burdensome rules and regulations hampering credit union service to members. America’s Credit Unions highlighted those opportunities in a comprehensive letter sent to the Office of Management and Budget Monday.
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
America’s Credit Unions requested rescission of several rules. These include:
- NCUA’s succession planning rule, which conflicts with the EO because its “private costs exceed any demonstrated public benefit and it burdens small businesses in unforeseen ways.”
- CFPB’s small business lending data collection rule under section 1071 of Dodd-Frank, as “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;” and
- CFPB’s open banking rule, which conflicts with multiple criteria warranting rescission: as statue says nothing about “creating an API environment subsidized by data providers.” America’s Credit Unions seeks a re-write of this rule.
The comment letter contains detailed descriptions of why these rules, and others, conflict with aspects of the EO.