ARLINGTON, Va.–When credit union leaders were asked in a new national survey to rate on a -10 to 10 scale their expectations for growing compliance burden under the CFPB and NCUA, the average score was an 8, indicating strong pessimism over the paperwork that lies ahead.
The outlook isn’t the result of any one thing, in the estimation of Carrie Hunt, EVP and general counsel with NAFCU. Instead, it’s about the “totality of the circumstances.”
As CUToday.info reported here, the Lakewood, Colo.-based CUSO, Aux, conducted the survey of CU leaders for their thoughts on the future of the economy, and found that much like the country itself, respondents were divided along party lines.
But NAFCU’s view on what is likely in store isn’t divided.
“The CFPB has returned to a take no prisoners approach and, unfortunately, credit unions get lumped into regulations where they don’t need to be included,” said Hunt. “A lot of times it’s not that the goal of the CFPB is a bad goal, it’s just that with new regulations it becomes impossible to execute.”
An Example
As an example, Hunt said NAFCU “fought hard” in opposition to a proposal that credit unions perform an ability-to-repay analysis on short-term lending solutions.
“It’s not that credit unions don’t do some of that on their own, but credit unions have a unique product that’s extremely consumer friendly,” said Hunt. “So, why does a credit union need to go through hoops on a product they are going to lose money on anyway? It’s a complicated issue. There is no one panacea for regulatory burden, but credit unions do need to be recognized for being unique.”