U.S. Sen. Mike Rounds (R-SD) recently joined a bipartisan congressional call for the Consumer Financial Protection Bureau (CFPB) to adjust regulations to reflect the risk profiles of local banks and credit unions.
A letter to CFPB Director Richard Cordray signed by Rounds and 69 of his fellow senators states that the CFPB must consider the impact of its regulations on community-based depository lenders that are instrumental in driving economic growth.
“As it has now been more than six years since the enactment of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank), there are many new rules and regulations in place,” the letter states. “We must ensure that credit unions and community banks are not unduly burdened by compliance, but rather have the ability to maintain their close relationships and continue to offer a wide variety of consumer financial products and services.
Rounds recently introduced the Taking Account of Institutions with Low Operation Risk (TAILOR) Act, S. 3153. Rounds urged his fellow senators to support the TAILOR Act to ensure that federal agencies take the risk profiles and business models of individual financial institutions into account when crafting regulations.
“I am pleased so many of my colleagues agree that federal regulators should tailor their regulations for smaller financial institutions so they can focus their resources on taking care of their customers, rather than spending time and money on regulatory compliance,” Rounds said. “I welcome them to cosponsor the TAILOR Act.”