The Consumer Financial Protection Bureau (CFPB) has made substantial efforts to assist credit unions during the pandemic, but additional flexibility and compliance assistance may be needed, CUNA wrote to the Senate Banking Committee Tuesday. CFPB Director Kathy Kraninger is expected to give her semi-annual testimony before the committee Wednesday.
“We appreciate the regulatory amendments and supervisory flexibility that the CFPB has provided so far but more is going to be needed as the crisis continues,” the letter reads “This crisis is going to require the Bureau to use all its tools to ensure financial service providers can weather the storm and meet the needs of consumers. The CFPB is in a unique position to highlight the stress on both consumers and the consumer financial services system and raise the alarm bells about unnecessary choke points, especially related to small business lending, mortgage servicing, and small dollar lending, and we encourage the Bureau to do so”
CUNA continues to recommend the CFPB continue to provide credit unions flexibility for the duration of the pandemic, this includes:
CUNA also called on Congress to act to protect credit unions from frivolous litigation arising from actions to assist financially distressed members during the pandemic, to establish a bipartisan commission to lead the CFPB and reiterated its call for the CFPB to ensure execution of its regulatory agenda ensures credit unions are able to provide safe and efficient products and services.