AFSA Executive Addresses Policymakers on New Regulatory Landscape

On Sept. 13, AFSA Executive Vice President Bill Himpler spoke to an audience of policy professionals, including federal regulatory personnel, about the new regulatory landscape for non-depository financial institutions. Himpler was invited by the Regulatory Taskforce of Women in Housing and Finance, a professional society in Washington, D.C., to give an overview of the Consumer Financial Protection Bureau’s (CFPB) new authority under the Dodd-Frank Act. He used the opportunity to introduce the audience to the consumer credit industry, observing that “finance companies represent the oldest and safest form of consumer credit.”

 

Himpler related how the marketplace is reacting to the new regulatory regime and offered his insight into what regulation will look like in the near future. He complimented the CFPB for seeking enhanced transparency and simplification in loan disclosures, while also expressing industry concerns about the looming uncertainty surrounding the new “abusive” standard for financial services, which was established by Dodd-Frank. Reviewing the CFPB’s initiative to define “larger participants” for federal supervision, Himpler noted that AFSA has advocated for a reasonable and manageable scope. AFSA encourages coordination among federal and state agencies wherever possible, as substantial regulation of non-depositories already exists at the state level. Finally, he encouraged increased clarity from the CFPB on its enforcement standards.

 

Himpler closed his remarks by sharing a quote by Muhammad Yunus, an economist and recipient of the 2006 Nobel Peace Prize, “If economists would only recognize the powerful socioeconomic implications of credit, they might recognize the need to promote credit as a human right.”

Automotive News (09/12/11) Mooney, Joan