MARLBOROUGH, Mass. (6/30/15)--Leaders from the Massachusetts credit union system met with Consumer Financial Protection Bureau (CFPB) Deputy Director Steve Antonakes recently to talk about the impact of current and future CFPB regulations.
Paul Gentile, president/CEO of the Cooperative Credit Union Association; Bernie Winne, president/CEO of Boston Firefighters CU, Dorchester, Mass., and Doug Petersen, president/CEO of Workers' CU, Fitchburg, Mass., covered a wide range of issues with Antonakes.
Among the topics addressed:
There was also an overall theme of the CFPB looking to and utilizing credit unions more as the core example of financial institutions providing quality services to consumers.
Winne stressed to Antonakes the significant and costly challenge of readying credit union processing systems to report home equity loan data for HMDA, which is currently an open question with the CFPB. Winne noted that while larger institutions can better afford and adapt to a major systems change, credit unions don't have that same luxury.
Petersen urged CFPB to consider the necessity of regulations without considering financial institution asset size. Petersen noted that a lot of the CFPB regulations are driven by the size of the institution, but rules should be evaluated based on whether they add value or not.
Gentile focused on the unintended consequences of good intentioned regulation. He noted CFPB concerns over overdraft protection and payday loans may be warranted with some financial players, but credit unions are good actors in these areas and CFPB must be cognizant of the value those programs have for consumers. If the CFPB becomes too restrictive, good credit union programs may be less accessible to consumers.