WASHINGTON–A coalition of 70 senators, led by Sen. Joe Donnelly (D-IN) and Sen. Ben Sasse (R-NE), have sent a letter to the CFPB urging it to carefully tailor rules for community banks and credit unions.
Sources indicated that CUNA had been working on Capitol Hill to get the letter written.
“Congress and federal regulators have long taken the approach that credit unions and community banks should be treated differently from the largest financial institutions and non-bank lenders,” the letter reads. “It is our hope that the CFPB also takes this approach and considers the impact of its rulemaking on smaller financial institutions and consumers.”
NAFCU, which backed the letter, applauded the senators' effort.
“We greatly appreciate Senators Donnelly and Sasse for their bipartisan leadership, and all of the senators who signed the letter. Their consideration of the tremendous regulatory burden facing today’s credit unions is invaluable,” said NAFCU President and CEO Dan Berger. “The solid support by the majority of Senators, in conjunction with the 329 House members who sent Director Cordray a similar letter earlier this year, unequivocally affirms Congress’ intention for CFPB to use its Dodd-Frank Act exemption authority to better tailor its rules to credit unions.”
NAFCU again emphasized that it was the only credit union trade association to oppose subjecting credit unions to CFPB authority under Dodd-Frank. The trade association maintains that the CFPB should exercise its authority to exempt credit unions from regulations aimed at bad actors.
A copy of the letter can be found here.