Newsroom

NAFCU Senior Regulatory Affairs Counsel Tessema Tefferi, during a CFPB Consumer Advisory Boarding meeting in Itta Bena, Miss., yesterday, said credit unions are unrivaled in the financial education they provide to their members.

The theme of the meeting was innovative strategies for improving consumer access to credit, information and financial resources. When asked about the importance of financial education for consumers, Tefferi praised credit unions' efforts. "Credit unions are second to none in their financial education efforts," he said.

Another panelist, Urban Institute's Ellen Seidman, used credit unions' shared branches as a positive example of how credit unions are reaching out to rural areas or those underserved by other financial institutions.

The panel included representatives of consumer groups, community and industry representatives and members of the public.

CFPB Director Richard Cordray, in his opening address, announced two initiatives:

• improve consumers' understanding of the mortgage market; and
• boost financial empowerment for certain low- and moderate-income consumers.

Cordray said the CFPB has launched a new online tool to provide the public with easy access to mortgage information collected under the Home Mortgage Disclosure Act. This tool allows consumers to access easy-to-understand information on their local mortgage markets.

The CFPB director also announced a pilot training program called "Your Money, Your Goals." The purpose of this program is to assist front-line social services staff in helping their clients manage their financial affairs more effectively.

During the public meeting, the panel addressed obstacles to consumers getting credit as well as strategies to alleviate these obstacles. The public participants expressed their concerns to the CFPB and panel members, focusing largely on problems with predatory lenders and access to credit.