U.S. Representative Randy Neugebauer (R-Texas) on Wednesday urged his colleagues in the House to adopt legislation to ease the regulatory burdens on non-depository financial institutions in his opening statement of a House subcommittee hearing.
In the Financial Services Subcommittee on Financial Institutions and Consumer Credit hearing entitled "Examining Regulatory Burdens on Non-Depository Financial Institutions," Neugebauer, who is the chairman of that subcommittee, called those institutions "a diverse and important part of our financial sector."
“We must push forward in our bipartisan efforts to provide regulatory relief for our Main Street financial institutions and protect the financial independence of the individuals and families they serve,” he said.
Neugebauer presented four main issues facing the institutions in his opening statement.
The first issue Neugebauer discussed was the Truth in Lending Act and Real Estate Act, commonly known as TRID, and the pending August 1 effective date.
"This is a major endeavor that will significantly alter the mortgage closing process for consumers, lenders, and title insurance companies," Neugebauer said, noting that it is important for the committee to understand what the industry is doing to comply with the effective date and what issues the committee needs to address.
The second issue was the Consumer Financial Protection Bureau's promulgating rules addressing the short-term, small dollar credit market, which American consumers widely use – and is highly enforced and regulated at the state level.
"It is important for this Committee to examine the regulatory structure of these products, and understand how a Federal regulation impacts credit access and product choice for consumers," Neugebauer said.
The Congressman addressed the CFPB's regulatory action that has affected the auto industry, then for the fourth issue, he stated how important it was for the committee to recognize how federal regulation impacts industries that have been historically state-regulated.
"While we often talk about regulatory burdens in compliance terms—burdensome, duplicative, and unnecessary supervision and examination can also burden community-based lenders," Neugebauer said.