CFPB Overhaul Could Return Large Credit Unions To NCUA Oversight
By CU Today Staff —
WASHINGTON—House Republicans have introduced a sweeping CFPB overhaul that would triple the threshold for direct Bureau supervision of banks and credit unions from $10 billion to $30 billion in assets, potentially returning oversight of several large credit unions to the NCUA.
H.R. 10184, the Consumer Financial Protection Accountability and Reform Act of 2026, was introduced this week by House Financial Services Committee Chairman French Hill (R-AR) and Financial Institutions Subcommittee Chairman Andy Barr (R-KY) with 29 Republican cosponsors.
The package also would end the CFPB’s funding through the Federal Reserve and subject it to annual congressional appropriations; create a dedicated inspector general; require more extensive cost-benefit and small-business analyses; and mandate eight-year reviews of major rules. Institutions above $30 billion could elect to have their prudential regulator conduct consumer compliance supervision, although global systemically important banks would remain under the CFPB and the Bureau could intervene when it finds heightened consumer risk or inadequate supervision.
Other provisions would narrow the Bureau’s authority over “abusive” practices, give companies that self-report violations 180 days to correct them and restrict monetary relief when a company demonstrates good-faith compliance. The legislation also would create a safe harbor for qualifying small-dollar loans of $3,500 or less, sharply reduce certain civil-money penalties, curb the use of market-monitoring data in enforcement and require consumers to complain first to their financial institution before using the CFPB portal.
Hill said the immediate objective is to build consensus for possible action in the next Congress, including support from Democrats and the Senate.
In a letter to the HFSC Tuesday morning, the Defense Credit Union Council endorsed the Hill-Barr package but urged lawmakers to add a bipartisan CFPB commission.
“Chairmen Hill and Barr have produced serious legislation that recognizes consumer protection and regulatory accountability are not competing objectives,” said Anthony Hernandez, DCUC president/CEO, Ret. U.S. Air Force colonel. “An effective CFPB must be able to pursue fraud and exploitation, but it must also operate under clear statutory boundaries, meaningful congressional oversight, and a supervisory structure that respects the expertise of the NCUA and state regulators. These reforms would help preserve access to affordable, responsible financial services for servicemembers, veterans, and military families.”
America’s Credit Unions has supported both congressional appropriations and replacing the single director with a five-member commission. The current bill retains the single-director structure.
“America’s Credit Unions has long supported changes to bring more accountability and improvements to the CFPB,” a spokesperson from America's Credit Unions said. “We are pleased to see the Committee addressing a number of our concerns in the legislation it has released. We support this effort and urge the Committee to act on these reforms.
Originally reported by CU Today.