NCUA Chair J. Mark McWatters wrote that a number of changes should be considered to CFPB rules and policymakings, to provide regulatory relief for credit unions, particularly with respect to exemption authority, HMDA and UDAAP requirements of Dodd-Frank.
Credit unions play an important role in meeting the needs of consumers facing financial challenges and support more flexibility and the ability to innovate. However, CUNA cautioned against any additional mandatory data reporting in a letter to CFPB Thursday.
CUNA supports proposed changes to proposed changes to ethnicity and race collection under the Equal Credit Opportunity Act. CFPB proposed the amendments to provide a creditor with additional flexibility in how it collects applicant ethnicity and race information.
Credit unions will be represented in the upcoming Consumer CFPB field hearing on small business lending by Sharon Lindeman, vice president of regulatory advocacy for the California and Nevada Credit Union Leagues.
Comments are due May 9 on NCUA’s ANPR, and CUNA urges credit unions to comment. Other comment deadlines this month include the Consumer Financial Protection Bureau’s alternative data and Equal Credit Opportunity Act amendments.
CUNA appreciates the announcement from the CFPB this week that it will make changes to its disclosure requirements to its current ex parte policy on rulemakings, giving 10 business days for documentation up from 3 days.
The CFPB issued a proposal designed to facilitate compliance with the 2015 updates to the HMDA rule. Initial CUNA analysis suggests the changes will be favorable for credit unions, and CUNA will continue to examine the proposal.
CFPB Director Richard Cordray claimed Wednesday that credit unions are a “daily concern” for the bureau, a statement questioned by CUNA President/CEO Jim Nussle. Several other House committee members questioned the bureau’s chilling effect on services to consumers.
CUNA has deep concerns that the CFPB rarely gives consideration to regulatory burdens as a result of once-size-fits-all regulations, it wrote to the House Financial Services Committee, addressing rules the CFPB claims to already have provided necessary relief from.
CUNA’s compliance staff was recently asked about a garnishment order for a member’s that receives federal benefits. The credit union determined the member did not have enough and the member asked the order be paid in full using those funds.