WASHINGTON—Financial institutions—particularly credit unions—can expect the CFPB to be doing “a lot of math” under the new leadership, according acting director Mick Mulvaney.
In addressing CUNA GAC attendees, who welcomed Mulvaney much more warmly than former CFPB Director Richard Cordray at past GAC meetings, Mulvaney emphasized that the Bureau will remain focused on regulation, but in doing so will clearly understand the financial impact of its moves on FIs and their customers and members.
“One thing we will be doing differently now is looking carefully at the cost/benefit analyses,” said Mulvaney. “We will look at the true impact and cost of each regulation…We understand that each time we put a new cost on you that it comes out of your members’ pockets.
Mulvaney was clear from the beginning of his address that he understands credit unions and their needs, saying he has been a credit union member for many years. He stressed that he understands credit unions “did not cause the financial crisis” and therefore should not be regulated like the bad actors behind the problems.
“We also recognize that one-size-fits-all regulation does not fit with your industry,” he said. “We hope to tailor regulations to match the size of the institutions we regulate.”
Mulvaney also showed support for the current NCUA board, taking a moment to address a former NCUA chairman.
“When I was on the Financial Services Committee and we listened to Debbie Matz’ testimony—when she said that credit unions did not represent their members’ interests, that was one of the most bizarre things I had ever heard. I am glad she quit not long after that.”
Mulvaney emphasized that the CFPB will continue to “go after the bad actors and faithfully fulfill our obligations under the law…but we will do that a little differently (than the practices of the office under Cordray).”
He stressed that the Bureau will not be “pushing the envelope” and taking advantage of its very broad powers—powers he said that are not under the purview of Congress.
“And we won’t bend over backward to come up with creative ways to sue people just because we have the ability to do that,” Mulvaney said.
The acting director also stressed that financial institutions will fully understand the law before the Bureau takes action.
“We won’t regulate by enforcement—we won’t send people a message by suing them,” he said. “In the future you will know what the rules are before we accuse you of breaking them. The bottom line is everyone deserves to be treated fairly. We have a tremendous amount of authority at the CFPB. It may sound arrogant, but I may be one of the most powerful people in D.C. I don’t have to ask Congress for money. The amount of oversight Congress has over me is very limited…That can be a dangerous situation. But we will enforce the law with great recognition of the fact we have this authority. So we will do this humbly and judiciously.”
Mulvaney concluded by saying that while it’s the agency’s job to protect consumers, the Bureau will also be mindful of financial institutions that deliver the products consumers need.
“Yes, we are here to protect people who use credit cards, but we are also here to help those who provide that credit,” he said. “We are here to help people who borrow money, but we are mindful and respectful of those who make these loans.”