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CUNA Subcommittee Presses Regulatory Concerns with NCUA, CFPB
Thursday, December 1, 2016 6:55 AM

CUNA with regulators

Members of Credit Union National Association’s Consumer Protection Subcommittee met with the National Credit Union Administration and the Consumer Financial Protection Bureau this week, addressing a wide range of issues related to regulatory burden.

Attendees represented credit unions of varying asset sizes and memberships and provided specific examples to NCUA and CFPB about how members have been harmed by overly burdensome regulations that have inhibited credit unions’ ability to serve them.

As an example, they highlighted to CFPB how it has become more difficult, particularly for smaller credit unions, to continue to operate in the mortgage market compared with the largest financial institutions. They also provided solutions for an improved Home Mortgage Disclosure Act (HMDA) rule and urged CFPB to delay the implementation of the rule.

The attendees, including CUNA staff, discussed:

  • Implementation of the Military Lending Act;
  • CFPB's payday and small-dollar loan proposal;
  • CFPB’s third-party Small Business Regulatory Enforcement Act (SBREFA) proposal for debt collection, and potential pending first-party debt collection SBREFA process;
  • Unfair, deceptive or abusive acts or practices (UDAAP), including CFPB’s recent enforcement action against a credit union;
  • Issues relating to HMDA; and
  • Overdraft protection services.

In both meetings, subcommittee members urged CFPB and NCUA to better collaborate, so that credit unions are not unfairly penalized by CFPB proposals or enforcement actions that conflict with NCUA guidance or statutory rights under the Federal Credit Union Act.

They urged the regulators to work closely on any policymaking surrounding debt collection, particularly since collection activities are directly connected to safety and soundness requirements. They warned that overly stringent debt collection requirements on credit unions could harm members, if credit unions are forced to constrict providing credit.

Read more at CUNA News Now.