Protecting Our Local Communities

Sen. Deb Fischer

    In the wake of the financial crisis, the 111^th Congress created the Consumer Financial Protection Bureau (CFPB), which is charged with protecting consumers from financial sector abuse. The agency is also responsible for ensuring our financial institutions follow the laws of the land.

Four and a half years later, the CFPB exerts immense influence over all sectors of the economy. The agency’s budget has grown by 74 percent in the past two years, from $357 million in 2013 to $622 million in 2015. Over the years, the CFPB has become a bureaucracy that has too much power over the free market. As such, it requires robust oversight from Congress.

Originally, Congress established the CFPB to regulate the markets for consumer financial products and services, but they have since expanded their reach beyond that. It is now placing a considerable strain on our pocket books, and it is inhibiting economic growth.

In Nebraska, community banks are feeling the effects of the agency’s misguided rules. Under current law, the CFPB provides exemptions to certain lending restrictions for areas deemed rural. Through these exemptions, community banks are able to increase access to credit for rural areas and their dependent industries, such as agriculture. But first, a county must receive the rural designation. Due to flaws in the current CFPB review process, many rural areas are not being labeled correctly and, as a result, they are missing opportunities for economic growth.

For counties with densely-populated areas and rural reaches, the agency’s designation system is failing. Adams, Buffalo, and Hall counties have all been deemed “non-rural.” Take Hall County as an example. The fact that Grand Island has a population close to 50,000 shouldn’t prevent a producer from Doniphan from accessing the credit they need to grow their local economy.  

What’s more, once the CFPB makes a county-by-county designation, it is set in stone. There are no mechanisms in place to allow an area to appeal their designation. This means many rural communities are being left without a voice in the process.

In the U.S. Senate, one of my priorities is creating a regulatory environment to help our community businesses expand and thrive. That is why I cosponsored the Helping Expand Lending Practices (HELP) in Rural Communities Act. This legislation, which was signed into law as part of the highway bill on December 4, 2015, will allow counties that have been improperly designated as “non-rural” to provide more information and encourage the agency to reevaluate their status. It will also designate specific criteria for the agency to consider when making a county designation. This common-sense legislation would provide our local banks with some relief from onerous federal regulations and help build stronger Nebraska communities.

I believe this structural reform is an important step forward in reforming the CFPB processes. Our rural communities need the freedom and flexibility to prosper and grow. As your Senator, I will continue conducting aggressive oversight at the federal level to address government overreach and protect Nebraska families.

Thank you for participating in the democratic process. I look forward to visiting with you again next week