WASHINGTON—Both credit union trade groups have either met with or sent a letter to the CFPB to press for additional relief for credit unions during the coronavirus pandemic.
NAFCU President and CEO Dan Berger and Executive Vice President of Government Affairs and General Counsel Carrie Hunt spoke with CFPB Director Kathy Kraninger and other Bureau senior staff to reiterate credit unions' need for regulatory relief amid the coronavirus pandemic.
Berger urged the CFPB to hold off on rulemakings during the pandemic and recovery to ensure credit union resources can be fully dedicated to serving members. He previously asked the Bureau, and NCUA, to provide broad flexibility with compliance for at least 60 days.
In addition, Berger reiterated NAFCU's call for the Bureau to modernize the electronic disclosure and signature-related provisions of all its regulations.
The CFPB is expected to soon release a proposal to amend its qualified mortgage (QM) rule, including to move away from the debt-to-income ratio and toward an average prime offer rate threshold, and has also indicated it plans to let the government-sponsored enterprise (GSE) patch expire in 2021, with the possibility of a short-term extension to support the transition.
Berger, in the meeting this week, discussed these efforts and the possibility of temporarily relaxing the QM standard to generate more liquidity that will enable credit unions to make more loans to members during this time, especially those of low- or moderate-income.
CUNA Letter
Separately, CUNA sent a letter to Kraninger that makes a number of recommendations and requests of the Bureau. CUNA has asked for changes to supervision and enforcement, rulemaking, and guidance around a host of issues.
The full letter can be found here.