WASHINGTON – CUNA has deep concerns that the Consumer Financial Protection Bureau (CFPB) rarely gives consideration to regulatory burdens as a result of once-size-fits-all regulations, it wrote to the House Financial Services Committee Wednesday. The letter was sent for the record of CFPB Director Richard Cordray’s semi-annual testimony before the committee.
“As the CFPB moves forward with its review of rules it has promulgated over the last several years, we hope it will take more seriously the concerns that credit unions, Congress, and consumers have brought to its attention about the elimination of choices and product options because of overly broad and complex rules,” CUNA’s letter reads.
“We would also renew our call on the CFPB to engage in a moratorium on finalizing its current proposals, such as the small dollar and arbitration proposals, until it completes research and analysis determining how current rules are impacting credit unions and demonstrates a more informed understanding of what changes need to be made to protect credit union members,” it adds.
CUNA specifically addresses rules the CFPB claims to already have provided necessary relief for small financial institutions in during rulemakings. This includes:
- Ability to repay/qualified mortgage, as 43% of recently surveyed CUNA members cited the rule as most negatively impacting the ability to serve members with mortgage products. The provided exemptions did not offer relief for many credit unions. CUNA urges Congress to work with CFPB to allow all loans held in portfolio by a credit union to receive qualified mortgage status;
- Mortgage servicing, as CUNA continues to hear from institutions that CFPB claims are exempt, yet have eliminated certain products due to regulatory burden. Credit unions with assets of less than $100 million are the asset group most apt to have dropped their mortgage program altogether;
- Home Mortgage Disclosure Act, particularly due to its effect on credit unions offering home equity lines of credit. Credit unions have provided data showing the bureau’s exemption doesn’t go far enough and places undue burdens.
During his testimony, Cordray said credit unions and other community financial institutions are a “daily concern,” a statement questioned by CUNA President/CEO Jim Nussle (see related story).
in Legislative & Political News