CUNA President/CEO Jim Nussle stressed the urgency for credit union exemption from Consumer Financial Protection Bureau (CFPB) regulations in a recent interview with The Gazette of Colorado Springs, Colo.
The article noted that CUNA recently forwarded a letter to the CFPB signed by 329 members of the U.S. House of Representatives, urging the agency to use its authority to exempt credit unions from its regulation.
"This should be a message to (bureau director Richard) Cordray," Nussle told The Gazette. "We believe we should be exempt from the CFPB and that we shouldn't have been part of (the agency) to begin with. We were not part of the problem in the financial crisis."
The Gazette noted that credit unions spent $6.1 billion--or about 17% of expenses--in 2014 complying with regulations, and lost more than $1 billion a year in revenue, according to a February study by Cornerstone Advisors Inc. and CUNA.
One-fourth of credit union employees' working hours is spent on regulatory compliance, and regulatory costs nearly doubled between 2010, when the Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted, and 2014, Cornerstone concluded.
"We recognize that some regulations are needed to maintain safety and soundness, but some make it more difficult to deliver services to our members," Nussle said. "It is not so much about getting rid of regulations as it is about how they are applied. Some of it is the inconsistency in how they are applied or not using technology in the way they are applied."