NCUA Chair J. Mark McWatters asked Consumer Financial Protection Bureau (CFPB) Director Richard Cordray to exempt credit unions with assets of more than $10 billion from the bureau’s examination and supervision authority. CUNA President/CEO Jim Nussle praised McWatters for his comments.
"We thank Chair McWatters for continuing his efforts to secure regulatory relief for credit unions when it comes to CFPB supervision and examination authority," Nussle said. "We agree that NCUA is best equipped to supervise and examine those credit unions, and shifting that focus from the CFPB will allow it to focus on those parties that truly harm consumers."
One of the goals of CUNA’s bipartisan, pro-consumer Campaign for Common-Sense Regulation is to increase the asset threshold for CFPB supervision.
“Subjecting federally insured credit unions and their consumer/member owners to the dual examination--and, in the case of federally insured, state-chartered credit unions, triple examination--regime mandated under Section 1025 of the Consumer Financial Protection Act imposes unnecessarily burdensome costs, particularly given their positive, consumer-focused role,” McWatters wrote.
He added that NCUA and CFPB “can and should” work together, as NCUA’s enforcement tools are broader than those available to CFPB, which would allow the bureau to focus on targeted actions designed to protect consumers.
There are 6 federally insured credit unions that have assets of $10 billion or more.