WASHINGTON (3/16/16 UPDATED 3:30 p.m. ET)--The Credit Union National Association (CUNA) continues to be disappointed in Consumer Financial Protection Bureau (CFPB) Director Cordray’s stance on the impact the bureau’s regulations are having on not-for-profit, member-directed credit unions, said Jim Nussle, president/CEO of CUNA.
Nussle issued the statement in response to Cordray’s testimony before the U.S House Financial Services Committee today, in which Cordray was taken to task by legislators about not using the CFPB’s exemption authority to help small financial institutions.
“He is simply mistaken regarding the legislative history regarding a credit union exemption during the congressional debate surrounding the Dodd-Frank Wall Street Reform and Consumer Protection Act .
“More than three-quarters of the U.S. House of Representatives--a whopping 329 individual members of Congress--recently signed a CUNA- initiated letter by Reps. Adam Schiff (D-Calif.) and Steve Stivers (R-Ohio) calling on the CFPB to use its authority to protect small financial institutions from regulatory burden, just as Congress provided for in Dodd-Frank.
“There is no question that the rules the bureau continues to create are negatively impacting the ability of credit unions to provide diverse product and service offerings to their members, and forcing credit unions to exit certain markets. We are particularly interested in meeting with Director Cordray and his staff so they can fully understand the $7.2 billion annual regulatory impact we’ve identified in our recent study of credit union compliance costs.
“The director unfortunately seems comfortable with his own narrow set of facts that do not take into account a full understanding of the damage the increasingly complex regulatory burden is having on credit unions.”