WASHINGTON (9/18/15)--Consumer Financial Protection Bureau Director Richard Cordray, in a speech Thursday, reviewed his agency's four-year history, noting that its first task was to address serious problems in the mortgage market that ignited the country's financial crisis.
Speaking to the National Association of Realtors, Cordray said, "We have sought to take a balanced and measured approach to this task, mindful of the concerns of many stakeholders."
CUNA Chief Advocacy Officer Ryan Donovan immediately took that view to task.
“I don’t think that many credit union executives would agree with Director Cordray’s rosy assessment of the impact of the CFPB’s regulations on credit unions’ ability to serve their members," Donovan said. "We hear from credit unions that it is more difficult to serve members and products are more expensive to members as a result of CFPB regulations."
Donovan added that he disagrees that the CFPB's efforts to accommodate credit unions have been ‘painstaking.’
"To the contrary, when the bureau has included exceptions to their rules, they have been consistently too narrow. They have fallen far short of the authority Congress conveyed to the bureau to exempt 'any class of covered person, service provider, or consumer financial product and services' from its regulations."
“While we appreciate the ongoing dialogue we have with the CFPB on these issues," Donovan continued, "all too often it seems to forget that credit unions did not cause the financial crisis. Credit unions have not engaged in the activities that provided the impetus for the bureau’s creation."
Just as important, Donovan concluded, the CFPB often fails to demonstrate an appreciation for the fact that every additional dollar a credit union pays to comply with a CFPB rule is a dollar that comes out of the pockets of the members of the credit union.