Disputing recent assertions made by CFPB Director Richard Cordray, CUNA says the agency has done an abysmal job of tailoring its rules to the size and type of financial institutions it regulates.
“Regrettably…credit unions continue to tell us that the accommodations the CFPB continues to cite are not sufficient exemptions and they do not fully take into consideration the size, complexity, structure, or mission of all credit unions,” CUNA President/CEO Jim Nussle said in a letter to Cordray this week.
In recent speeches and testimony, Cordray has touted the flexibility his agency has shown in issuing rules.
But congressional Republicans have disputed those claims and may consider a Dodd-Frank overhaul bill as early as next week that would drastically curtail the CFPB’s powers.
In his letter and accompanying recommendations, Nussle outlined CUNA’s objections to CFPB’s decisions. Among other things, the association told Cordray that:
- The agency should modify its 2015 Home Mortgage Disclosure Act rules to provide meaningful exemptions for credit unions as soon as possible, since implementation deadlines are quickly approaching.
- The CFPB should make significant changes to mortgage disclosure and underwriting requirements since the rules increase the regulatory burden facing credit unions and create arbitrary barriers to homeownership.
“The CFPB should recognize credit unions are not predatory lenders but good faith partners for their members seeking to buy a home,” CUNA said.
- Expand exemptions the agency provides for mortgage servicers since current exemption are ineffective.
- Expand the exemption provided for entities that provide fewer than 100 remittances annually. “Of all its attempts to provide relief to small entities, this exemption threshold is probably the clearest example that the CFPB is simply not listening,” CUNA said, contending that the trade group has continually told the agency that the rule has made it more expensive for members to remit payments.
- Exempt credit unions from the agency’s final payday lending rules.
- Reexamine its use of its power to take enforcement actions in cases of Unfair, Deceptive, or Abusive Acts or Practices. CUNA argues that the CFPB has failed to consult with NCUA over its actions in this area—a violation of federal law.
