WASHINGTON–Consumer Financial Protection Bureau Director Kathy Kraninger—whose own job will be the subject of an upcoming Supreme Court hearing—told credit unions she is committed to effectively using the four tools available to the Bureau to protect consumers: Rulemaking, Supervision, Enforcement and Education.
But it will only do so in a prudent and effective way that isn’t burdensome to those it regulates, Kraninger told CUNA’s GAC.
“We are focused on using all four of those tools to prevent harm and protect consumers,” Kraninger said. “Issuing clear rules of the road is our goal. We want the rule process to be transparent, allow for feedback and provide for rigorous analysis.”
Kraninger updated her audience on its review of the Ability to Repay Qualified Mortgage (QM) rule. With the so-called QM patch set to expire in early 2021, Kraninger said the plan is to allow the patch to expire as intended and then to potentially amend the rule by moving away from the 43% ATRQM threshold in favor of a pricing threshold.
Kraninger said the Bureau is working to issue no later than May a proposed rule on the amendment.
Remittance Rule Update
Kraninger also spoke to efforts to improve the remittance rule, which expires in July of 2020. The agency is proposing to increase the safe harbor threshold for company compliance, exempting those making 500 or fewer transfers annually. The CFPB leader said that would remove the burden on 400 banks and 250 credit unions that send a relatively small number of remittances.
Kraninger touched on two other points:
- She said the CFPB will continue working on revising its rules using “fact-finding and data” and by making “evidence-based” decisions.
- Kraninger said the Bureau will continue to advance its “Start Small, Save Up” initiative aimed at empowering Americans to achieve their savings goals.