WASHINGTON–CFPB Director Richard Cordray said the Bureau is already using its authority to tailor regulation to smaller institutions, and credit unions do not need a blanket exemption.
In remarks here to a group of 70 senators who have requested more regulatory exemptions for credit unions, Cordray said the CFPB is already tailoring rules by keeping smaller institutions in mind.
The meeting, which was organized by Sen. Joe Donnelly (D-IN) and Sen. Ben Sasse (R-NB), and which came at the urging of NAFCU, follows a letter signed by 70 senators and another signed earlier by 329 members of the House that urged the CFPB to provide greater regulatory relief to credit unions.
NAFCU noted it has repeatedly pressed the Bureau to use its exemption authority more effectively.
“As I have expressed in the past, the Bureau recognizes that community banks and credit unions did not cause the financial crisis,” Cordray responded. “For that reason, the Bureau is committed to ensuring that the regulations that we promulgate are well-tailored and effective.”
Cordray cited several examples of where he said the CFPB has tailored its rules, including:
• The qualified mortgage (QM) rule’s expanded safe harbor for small creditors.
• An interim final rule to exempt small creditors in rural and underserved areas for QMs and Home Ownership and Equity Protection Act (HOEPA) loans with balloon payment features.
• An exemption for small creditors from the Truth in Lending Act requirement to provide periodic statements.
• An exemption for lower-volume depository institutions under Regulation C regarding data reporting requirements under the Home Mortgage Disclosure Act.