Known as the Bureau of Consumer Financial Protection Advisory Board Enforcement Act, S. 1963 would establish a small business advisory board within the CFPB, as well as create permanent community bank and credit union panels within the CFPB. The panels would represent members from rural and underserved areas.
Sen. Rounds, a member of the Senate Banking Committee, said, “As the CFPB continues to make decisions that affect every American, it is critical for rural areas, community banks, small businesses and credit unions to have a voice.” The CFPB has four advisory councils, only one of which—the Consumer Advisory Board– is required by Dodd-Frank. The new bill would create an additional advisory committee for small businesses, and codify two existing advisory boards, one for community banks and the other for credit unions.
“Small businesses, community banks and credit unions are invaluable forces in America’s economy, and they deserve a seat at the table as the CFPB makes important and far-reaching financial decisions,” Sen. King said. “Rural communities in Maine, South Dakota, and all across the nation rely on these institutions to create jobs and grow the local economy.” This rings true, especially for manufactured home owners who often live in rural areas.
The goal is to gain regulatory relief for community banks and credit unions, two historical sources of funding for manufactured housing loans, many of which have had problems operating due to the increasing cost of compliance under Dodd-Frank regulations. Many of these smaller financial institutions have either gone bankrupt or merged with other institutions. A similar bill, H.R. 1195, passed in the House in April.
Rep. Randy Neugebauer (R-TX) said, “After five long years of Dodd-Frank’s misguided regulatory assault on Main Street, I’m pleased the Financial Services Committee once again acted to provide regulatory relief for our community financial institutions and the hardworking Americans they serve. Washington’s one-size-fits-all rulemaking has shifted Dodd-Frank’s compliance costs down to many individuals and families—forcing them to absorb higher cost of credit while reducing their access to popular financial products.” ##
(Image credit: Consumer Financial Protection Bureau)
