WASHINGTON, D.C. - Congressman Roger Williams (R-Texas), a small business owner and member of the Financial Services Committee, has introduced a bill that would require the Consumer Financial Protection Bureau (CFPB) to explain to community banks and credit unions why they are not exempted from certain CFPB rules and regulations as permitted in the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Currently, CFPB has the ability to exempt smaller financial institutions from rules and regulations intended for larger banks, but to this day the CFPB has often failed to use this exemption.

"For the last five years Main Street American lenders have had to close up shop because they are incapable of spending more time, money and resources complying with costly federal regulations," said Williams. "These institutions are vital to the success of the small business community, and we need to make sure they are guaranteed the protections they are granted under the law."

Sixty percent of all business loans under $1 million are made by local institutions, and since 2007, on average, one community institution has disappeared each working day. Williams' bill has the support of the Independent Bankers Association of Texas (IBAT), the Texas Credit Union Association, the National Association of Federal Credit Unions and the Credit Union National Association (CUNA) .

"Sadly, many of the rules and regulations intended to address risks and abuses that surfaced during the most recent financial crisis among the larger players have disproportionately impacted community banks," said Christopher L. Williston, IBAT President and CEO. "Congressman Roger Williams' bill provides an important safeguard to ensure 'right sized and proportionate' regulatory response to allow community financial institutions to operate in a safe and sound manner and still serve their customers."

The Independent Community Bankers of America has noted that since 2007, there have been 153 new final regulations, 87 compliance changes and 59 annual adjustments to thresholds. It also noted that there are 103 proposed rules still under consideration. According to CUNA, since the beginning of the financial crisis, credit unions have been subjected to more than 190 regulatory changes from nearly three dozen federal agencies, totaling nearly 6,000 Federal Register pages.

"It is an exciting development in our ongoing efforts to reduce regulatory burdens for our credit unions," said Dick Ensweiler, President and CEO of Cornerstone Credit Union League. "Credit unions in the Cornerstone Credit Union League region greatly appreciate Congressman Roger Williams' leadership on this critical issue. This important legislation will ensure that consumers are protected by allowing credit unions and community banks to focus on serving the needs of their members and customers rather than spending resources on ever-growing regulations."