Optimism met the reality of political havoc last week, as credit union officials gathered at CUNA's Governmental Affairs Conference.

Republican members of Congress said they believed that legislation to overhaul Dodd-Frank can be enacted.

“House Republicans are listening and help is on the way,” House Financial Services Chairman Jeb Hensarling (R-Texas) said. “It's a new day in Washington.”

But that optimism was tempered by CUNA officials, who pointed out that President Trump, in his address to a joint session of Congress on Feb. 28 did not speak about the issue of financial regulatory reform.

“How much did he talk about Dodd-Frank reform?” asked Ryan Donovan, CUNA's chief advocacy officer. “Not at all.”

He told GAC attendees, “What that tells us is that we have work to do.”

And a Democratic House member said she is not optimistic that Congress will be able to accomplish much.

“This is going to be a tough year to get anything done,” Rep. Linda Sanchez (R-Calif.) said.

“Yes, it's going to be difficult to get things done,” CUNA President/CEO Jim Nussle told CU Times in a one-on-one interview at GAC.

In December, Nussle said that Congress was going to move quickly and regulatory reform needed to take center stage during the first months of the 115th Congress or be buried under the avalanche of appropriations measures and other legislative priorities.

But Trump and members of Congress are already occupied with a host of issues: Obamacare, budget matters, tax reform and confirmations.

The House can move quickly on legislation, such as an overhaul of Dodd-Frank. Nussle, a former House member, recalled saying that the Contract with America legislation moved in 1995 immediately after Republicans took control of the House.

“While the House was able to swiftly pass those measures, the Senate acted much slower and in some cases, rejected the House-passed legislation.

“The Senate doesn't work that way, he said. “The Senate can only do one thing at a time.”

The bottom line is that it is now unclear when regulatory relief legislation will move.

“I don't know when they're going to take a bill,” Nussle said.

Early in the week, Nussle stressed the need for GAC attendees to stay in touch with their members of Congress and to emphasize the need for credit union regulatory relief.

“If you're not communicating with them, someone else is,” he said.

Republicans gave a preview of their legislative efforts at GAC.

The crowd listens to political discussions at GAC.

Hensarling said he soon will introduce this year's version of the Financial CHOICE Act. He said this year's version of the bill will require regulators to tailor their rules to the size and type of financial institutions.

House Financial Institutions and Consumer Credit Subcommittee Chairman Blaine Luetkemeyer (R-Mo.) said that Hensarling's bill will “basically gut the agency.”

He said that Hensarling's bill will retain a single director structure, unlike the bill he introduced last year, which created a commission.

He said that is a strategic move to foster negotiations on the bill when it reaches the Senate, which likely will want a commission.

“I think you'll see a lot of support for a commission,” he said. A commission would be bipartisan, with both Democratic members and Republican members, he said.

Donovan agreed that for CFPB changes to become law, supporters will have to move to the middle.

Donovan said that Congress should convert the agency into one governed by a commission and should be more specific in exempting certain financial institutions from agency rules.

While Republicans emphasized legislation to overhaul the CFPB, Democrats stressed the need to work with the agency.

Rep. Brad Sherman (D-Calif.) said he is confident that CFPB Richard Cordray will increasingly tailor agency rules based on the size and type of financial institution being regulated.

Sherman said he recently addressed the issue with Cordray.

And he gave credit union officials some advice: “If you want to abolish the CFPB, talk to a Republican. If you want to influence the CFPB, talk to a Democrat.”

House Financial Services ranking Democrat Maxine Waters agreed, saying that she constantly urges the agency to consider credit unions when writing regulations.

“We will work with you and the CFPB,” she told attendees.

On another issue, Rep. Linda Sanchez said that House Ways and Means Committee Chairman Kevin Brady (R-Texas) will introduce comprehensive tax reform legislation. She said she will fight to ensure that the credit union tax exemption is retained in any tax legislation.

And she said she hoped Brady will seek input from Democrats on that legislation.

“I know compromise has become a four-letter role here in Washington,” she said. “But it is necessary to getting anything done.”

Nussle agreed that compromise is needed in the legislative process, but that has become difficult in the age of political divisions.

“Compromise has become a somewhat negative term,” he said, adding that complex legislation requires private negotiations during which members can find common ground.

That is problematic in the days of social media, he said. “It's difficult to have those [meetings] these days,” he added.