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REGULATORY CORNER
THE CHANGING FACE
OF THE CFPB:
OUR SUGGESTED NEW YEAR’S RESOLUTIONS
By Sarah Stevenson
Ringing in the New Year, there are a number of things we 2. Allow the National Credit Union Administration (NCUA)
say we’ll do — things that we’ll change after making a to handle oversight.
declarative New Year’s resolution. I say I will give up coffee The second resolution the CFPB should consider is
every year, but who am I kidding? The point is, a new year allowing the NCUA to administer examination and
brings potential for change. It gives us a fresh outlook. supervision over all credit unions for compliance with
consumer protection regulations, including those with
We started to see changes on the regulatory front this over $10 billion in assets. The CFPB should shift its
past November. Following the resignation of Richard focus on to the Wall Street banks, and others who
Cordray, the first director of the Consumer Financial have caused undue harm to consumers.
Protection Bureau (CFPB), a temporary freeze was placed
on any new rulemaking. 3. Maintain the Credit Union Advisory Council.
The CFPB should also make a resolution that it will
Since the CFPB’s inception, the Michigan Credit Union maintain the Credit Union Advisory Council. While
League (MCUL), Credit Union National Association (CUNA) the Council is not mandated by statute, the Council
and credit unions have been pushing for regulatory relief is made up of credit union employees only, ranging
after the Bureau, in one broad brushstroke, painted from CEOs to compliance officers and government
credit unions into the same corner as such institutions relations staff, and is limited to employees of credit
as Wells Fargo and Chase Bank. While there is quite a bit unions with less than $10 billion in total assets. The
of uncertainty in how the CFPB will operate going forward, Council advises the CFPB on regulating consumer
in the new year, MCUL is hoping for change on several financial products or services while providing the
fronts. In fact, we’ve made our own list of New Year’s unique perspective of credit unions and the credit
resolutions we hope the Bureau will consider. union difference. This direct input ensures there is a
better understanding of how regulations impact credit
1. L imit the finalizing of regulatory requirements. union members, their communities and the overall
The first New Year’s resolution we hope the CFPB everyday operations of credit unions. The Council also
considers is limiting the finalizing of any new regu- shares information, analysis and recommendations
latory requirements affecting credit unions, unless to better inform the CFPB on policy development
they are intended to provide relief from previously and rulemaking.
issued final rules. For example, in 2017, the CFPB
listened to the industry and issued an amendment to 4. Outright exempt credit unions.
the Home Mortgage Disclosure Act (HMDA) final rule Our final New Year’s resolution request of the CFPB
that increased the threshold for reporting of home is one we have long advocated for: The CFPB should
equity lines of credit (HELOC) to 500 loans through finally exercise its exemption authority granted under
2019. This temporary threshold increase relieves Section 1022 of the Dodd-Frank Act. Section 1022
the majority of Michigan credit unions from reporting provides the CFPB the authority to exempt any class of
HELOC data. covered entity from its rules so rules are appropriately
tailored to address problems in the industry and not
overburden smaller institutions.
8 FIRST QUARTER 2018 I CONTACT
