On September 16, CRL President Mike Calhoun delivered testimony before the Senate Banking Committee at a hearing called "Examining the State of Small Depository Institutions."

In his testimony, he discussed the important role that small lenders and credit unions provide in the financial market and for local communities, emphasizing how different these financial institutions are compared to their larger, national counterparts. Mike also spent considerable time underlining the need for regulatory flexibility that supports small depository institutions – while also arguing that such flexibility must not jeopardize consumer protections or responsible lending practices.

He concludes as such:

"A healthy national economy depends on both healthy community financial institutions and consumer protections. We applaud the work of credit unions and small lenders who provide services to communities greatly in need of opportunity. We also applaud the role small creditors have played in creating successful homeownership for many who would not otherwise have the opportunity.

The reckless and predatory lending that occurred without appropriate safeguards resulted in one of the worst financial disasters of American history. In order to avoid the repetition of past mistakes that proved to be devastating for American families, regulators like the CFPB must protect the American people and ensure access to a broad, sustainable mortgage market. We understand the need for appropriate flexibility for small depositories, but it must be balanced against the need for consumer safeguards, and not extend exemptions tailored for small banks and credit unions to larger financial institutions."

The full testimony is available above. Video of the testimony can be found on the Senate Banking Committee website.

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