Thursday, December 31, 2015

GAO: Dodd-Frank regs weighing on community banks, credit unions

The Hill reports:
Regulations under the Dodd-Frank Wall Street reform law are creating more compliance burdens for community banks and credit unions and industry associations, according to a new report from the Government Accountability Office (GAO).

Wednesday's report, a routine analysis required by the law, found that these financial institutions had to increase staff, training and time to comply with the new rules. GAO said some of these industry officials reported a decline in specific business activities, such as loans that are not qualified mortgages, due to fear of litigation or not being able to sell those loans to secondary markets.

GAO said the survey results suggest that there have been moderate to minimal initial reductions in the availability of credit among those responding to the various surveys, but regulatory data to date does not confirm a negative impact on mortgage lending.

“However, these results do not necessarily rule out significant effects or the possibility that effects may arise in the future,” the office said.
Dodd-Frank was all about limiting competition in banking. The progressive agenda in action.