NCUA Chair J. Mark McWatters wrote that a number of changes should be considered to Consumer Financial Protection Bureau (CFPB) rules and policymakings, to provide regulatory relief for credit unions, particularly with respect to exemption authority, the Home Mortgage Disclosure Act (HMDA) and the Unfair, Deceptive and Abusive Acts or Practices (UDAAP) requirements of Dodd-Frank.
McWatters also confirmed the need for CFPB to use its exemption authority under section 1022 of Dodd-Frank Act to provide relief to credit unions, an authority CUNA has also urged the bureau to exercise for certain rulemakings.
“Use of this permitted, yet underutilized statutory authority is appropriate to address compliance costs and the unintended consequence of limiting access to affordable financial services for many millions of middle-class credit union members through the enactment of needless regulatory burdens,” McWatters wrote. “I urge the bureau to exercise this exemption authority whenever possible with respect to credit unions, given the community’s long history of serving their members and protecting consumers.”
Ensuring the bureau uses its exemption authority is a primary goal of CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation.
For HMDA, McWatters asked the bureau to consider raising the various thresholds to “a more substantive asset and transaction and volume level” to further reduce reporting burdens on smaller institutions.
McWatters also recommended CFPB exempt credit unions from collecting and reporting the additional 14 data points imposed by the bureau that are not required by Dodd-Frank.
CUNA has asked the CFPB to raise the HMDA exemption threshold and resist requiring reporting of data points beyond what is required in Dodd-Frank on numerous occasions, most recently on Tuesday with a letter on proposed HMDA changes.
Regarding UDAAP, McWatters said CFPB “could go farther to extend relief to credit unions and ensure greater protection to consumers by providing much-needed clarity with respect to UDAAP, either through rulemaking or guidance.”