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CFPB Director Richard Cordray yesterday reiterated to the House Financial Services Committee that credit unions and community banks did not participate in the kind of lending activity that caused the financial crisis and described some recent actions the bureau has taken to ease the regulatory burden.

Cordray was before the panel Tuesday to testify on the bureau's semiannual report to Congress. His comments about relief were in response to a question from Rep. Lacy Clay, D-Mo. He also noted CFPB's recent proposal to expand the qualified mortgage exemptions for "small creditors" and "rural" areas and other tiered regulations, such as the privacy notice rulemaking.

The CFPB director also noted the importance of the bureau's credit union and community bank advisory councils and how much they influence CFPB's thinking.

DoD proposal
Cordray, in response to a question from Waters, said that the Department of Defense is moving forward "responsibly and steadily" on its proposed changes to the Military Lending Act.

Advisory opinions
Rep. Posey R-Fla., said CFPB should be offering advisory opinions. NAFCU agrees, and last year, with other financial trade groups, urged CFPB to give as much information and communications as possible on its TILA/RESPA integrated mortgage disclosure rule.

Data security
Rep. Joyce Beatty, D-Ohio, questioned Cordray on data security. Cordray responded that it's a huge issue affecting consumers and that everyone involved – merchants, financial institutions and processors – "needs to do a better job."

Payday lending
Panel Chairman Jeb Hensarling, R-Texas, asked if any rulemaking on the issue of payday lending is necessary. Cordray discussed the bureau's research and said payday lending is a big issue for the bureau as well as consumers. Responding to comments from Ranking Member Maxine Waters, D-Calif., and Rep. Carolyn Maloney, D-N.Y., about payday lenders' high interest rates for small loans, he said a proposal on payday lenders is expected to be out "soon."

Transparency
Rep. Sean Duffy, R-Wis., pressed Cordray for more disclosure and full transparency regarding the bureau's advisory councils, including the credit union advisory council.