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McWatters Recommends HMDA, UDAAP Relief for CUs
Thursday, May 25, 2017 6:40 AM

J. Mark McWatters, acting chairman of the National Credit Union Administration, yesterday urged Consumer Financial Protection Bureau Director Richard Cordray, to use the "permitted, yet underutilized, statutory authority" to ease the regulatory burden on credit unions.

“Use of this permitted, yet underutilized statutory authority is appropriate to address compliance costs and the unintended consequence of limiting access to affordable financial services for many millions of middle-class credit union members through the enactment of needless regulatory burdens,” McWatters wrote. “I urge the bureau to exercise this exemption authority whenever possible with respect to credit unions, given the community’s long history of serving their members and protecting consumers.”

He specifically called for relief from the compliance burden with respect to the Home Mortgage Disclosure Act (HMDA) and the Unfair, Deceptive, and Abusive Acts or Practices (UDAAP) requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). He noted that raising the HMDA reporting thresholds to a more substantive asset and transaction volume level would further reduce the reporting burden on smaller institutions.

McWatters also recommended CFPB exempt credit unions from collecting and reporting the additional 14 data points imposed by the bureau that are not required by Dodd-Frank.

Cornerstone Credit Union League SVP Regulatory Compliance Counsel Suzanne Yashewski said, “Cornerstone commends acting-Chairman McWatters for urging CFPB to ease compliance burdens on credit unions.”

Read the letter in its entirety here.