Treasury Report Calls for AFSA Supported Financial Regulatory Reforms

The U.S. Treasury Department released its first of four reports in response to President Trump’s executive order requesting a comprehensive review of financial regulations. The report, which focuses mainly on the depository system, proposes many legislative and regulatory changes AFSA advocated for in its communications with the Treasury Department and Trump Administration. These include the following:

  • Restructuring the Consumer Financial Protection Bureau (CFPB) by placing it under a bipartisan commission or make the Director removable at will by the president, as well as bringing it under the Congressional appropriations process and removing its supervisory authority;
  • Limiting the CFPB’s consumer complaint database to federal and state agencies, not the general public;
  • Clearly defining the unfair, deceptive, and abusive acts or practices standard;
  • Reforming the CFPB’s civil money penalty fund;
  • Mandating that the CFPB promulgate regularly review all its regulations;
  • Coordinating regulatory tools and examinations across federal and state agencies;
  • Requiring a rigorous cost-benefit analyses for financial regulations;
  • Repealing section 1071 of Dodd-Frank;
  • Modifying the CFPB’s mortgage rules, delaying implementation of the HMDA reporting requirements, and placing a moratorium on an additional mortgage servicing rule; and
  • Amending the SEC’s Reg AB II as it applies to registered securitizations to reduce the number of required reporting fields.

According to Senate Banking Committee Chairman Crapo (R-ID), the report’s recommendations will be used to craft legislation to bolster economic growth. AFSA previously submitted a proposal to Senate Banking Committee containing many of these suggestions.