Most costs of compliance don't vary by size and are proportionately a muchgreater burden for smaller institutions, Peoples FCU President/CEO Tom Brewer told members of the HouseSubcommittee on Financial Institutions and Consumer Credit onMonday.

Brewer was one of five witnesses scheduled to testify during afield hearing that focused on challenges facing community financialinstitutions in West Virginia, the home state of subcommittee chairRep. Shelley Moore Capito (R-W.Va.).

The leader of the $95 million credit union, which isheadquartered in Nitro, W.Va. and was originally chartered to serveemployees of a Union Carbide plant, said in his prepared remarksthat regulatory burden is one of the most significant changes hehas seen during his 27 years in the credit union industry.

Of the credit union's 29 full time employees, one is devotedfull-time to compliance.

“With a relatively small staff, having someone devoted full-timeto compliance is a considerable financial burden and was unheard ofonly a few years ago,” Brewer said. Compliance diverts resourcesfrom member service and impacts what the credit union can paymembers on their savings and what members pay in loan interest, headded.

Brewer also promoted member business lending legislation, whichhe said would bring 335 new jobs to the Mountain State, and theCapito-sponsored H.R. 3461, the Examination Fairness and Reform Act.

The field hearing took place at the Robert C. Byrd Courthouse inCharleston, W.Va. Congress is currently on break and won't returnto Washington until Sept. 10 after the national conventions.