As it is being reported in trade journals and mainstream media, a vote is set to take place in the House today, to pass the Financial CHOICE Act. Or, as CNN has called it, the vote on “killing Dodd-Frank.” It will be interesting to see what happens. Based upon the information I’ve read, it is expected that the Bill will pass the House but may be hung up in the Senate.
Regardless of what occurs today, it is likely that some sort of regulatory reform will occur in the near future. What that may look like is anyone’s guess. At times it is difficult to determine what is realistic, and what is simply a catchy headline. For example, I don’t foresee Richard Cordray of the CFPB being held in contempt. But, I wouldn’t be surprised if the CFPB’s governance and/or authority is different a year from now.
What does this all mean for those of us that manage regulatory compliance? In short – additional job security. The last 7 years have provided for plenty of work to be done in the compliance space as we’ve implemented the Dodd-Frank Act. To that point, we’re not even finished with the project yet, as the revised HMDA rule is yet to go into effect. Rolling back pieces of the Dodd-Frank Act will create even more work for us.
I don’t foresee a scenario in which the government and then regulators tell us to simply “go back to what you were doing in 2007.” Rather, there will likely be yet a new set of rules for us to follow. Hopefully, these rules are more advantageous to credit unions, and reduce regulatory burden which should in theory provide for additional credit and lower costs for us as consumers. But, that will have to be seen if and when we get there.
It is an interesting time in compliance right now, as we may be on the cusp of more change (or, maybe we’re not). But, either way, I think there is going to be plenty of work to be done. If we’ve learned anything since the original passage of Dodd-Frank, it’s that change is constant, and compliance is never boring!
Until next time, if you’d like to talk about the CHOICE Act, or anything else, just drop me a line.