Today, U.S. Representative Ed Royce (R-Calif.) questioned Mr. Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB), on the CFPB’s authority to tailor rulemaking for community financial institutions during a House Financial Services Committee hearing entitled “The Semi-Annual Report of the Bureau of Consumer Financial Protection.”
“On the question of ‘exemptive authority,’ as it applies to your ability to exempt community banks and credit unions from rulemakings, you argued in a recent speech that it was ‘not plausible’ for you to ‘use such authority to override Congress’s own judgment on such a broad-based policy matter.’ As you know Section 1022 of the Dodd-Frank Act gave the CFPB the authority to adapt regulations by allowing it to exempt ‘any class’ of entity from its rulemakings. Just this week, 329 Members of this House wrote to you, it was Mr. Stiver’s letter actually, to tailor regulations for community banks and credit unions, citing Section 1022 exemptive authority specifically. Do you believe that Section 1022 gives you the ability to tailor regulations for community financial institutions? Does a letter from over three-quarters of Congress change your view of Congressional intent?” asked Rep. Royce.
“We have routinely tailored our rules to take account …read more
Source:: U.S. Rep. Ed Royce