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June 29, 2016
Thaler notes impact of reg guidance on CUs ahead of hearing
NAFCU Vice President of Legislative Affairs Brad Thaler underscored the ongoing impact of regulatory guidance on credit unions in a letter sent ahead of today's Senate Homeland Security and Governmental Affairs subcommittee hearing on how guidance is communicated and fits within the larger regulatory apparatus.
Thaler pointed out that credit union regulator NCUA often provides guidance to credit unions. He said the guidance is seen by some NCUA examiners as a tool to be used by credit unions to help them comply with regulations, yet other examiners treat the guidance as if it were part of the regulation itself.
"There can be an inconsistency from examiner to examiner, creating confusion for institutions," Thaler wrote to Regulatory Affairs and Federal Management Subcommittee Chairman James Lankford, R-Okla., and Ranking Member Heidi Heitkamp, D-N.D. "We believe Congress should encourage regulators to ensure that all examiners treat both regulations and guidance consistently and for the purpose each was issued."
Thaler also noted NAFCU's efforts, and those of its member credit unions, to obtain legal opinion letters – written guidance – from CFPB. Rather than issue legal opinion letters to help institutions and other agencies understand written rules, Thaler noted, CFPB instead directs financial institutions to a helpline they must call to obtain guidance.
He said this often results in conflicting guidance being given and causes confusion when NCUA examiners evaluate credit unions for compliance with CFPB regulations. "NAFCU would appreciate the CFPB establishing procedures for institutions to get much-needed official written legal advisory opinions to provide clearer guidance," he said.
Thaler pointed out that credit union regulator NCUA often provides guidance to credit unions. He said the guidance is seen by some NCUA examiners as a tool to be used by credit unions to help them comply with regulations, yet other examiners treat the guidance as if it were part of the regulation itself.
"There can be an inconsistency from examiner to examiner, creating confusion for institutions," Thaler wrote to Regulatory Affairs and Federal Management Subcommittee Chairman James Lankford, R-Okla., and Ranking Member Heidi Heitkamp, D-N.D. "We believe Congress should encourage regulators to ensure that all examiners treat both regulations and guidance consistently and for the purpose each was issued."
Thaler also noted NAFCU's efforts, and those of its member credit unions, to obtain legal opinion letters – written guidance – from CFPB. Rather than issue legal opinion letters to help institutions and other agencies understand written rules, Thaler noted, CFPB instead directs financial institutions to a helpline they must call to obtain guidance.
He said this often results in conflicting guidance being given and causes confusion when NCUA examiners evaluate credit unions for compliance with CFPB regulations. "NAFCU would appreciate the CFPB establishing procedures for institutions to get much-needed official written legal advisory opinions to provide clearer guidance," he said.
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