|| Ted Dreyer (right, shown with NAFCU's Anthony
Demangone) of Wolters Kluwer gave tips to CUs
on what to expect from the CFPB beginning July
21. – NAFCU photo
June 3, 2011 – Credit unions learned during yesterday’s NAFCU webcast that simplified disclosures will become “the wave of the future” as the Consumer Financial Protection Bureau takes on its enforcement authorities on July 21.
Ted Dreyer, a senior compliance attorney with NAFCU Services Preferred Partner Wolters Kluwer, said he sees financial institutions moving toward model forms for disclosures because they will provide organizations with a safe harbor and help ensure they’re in compliance with CFPB rulemakings.
Dreyer said one of the bureau’s main goals is to ensure consumers understand financial products. But while the CFPB has a goal to simplify disclosures, he said implementation will not be easy for credit unions or other financial institutions, which will need to stay on top of changes as they arise. He pointed credit unions to informational websites, such as the CFPB and Wolters Kluwer websites. Participating in educational sessions such as yesterday’s webcast is also a good idea, he said.
The CFPB will derive its rules from various statutes, among them the Homeowners Protection Act, Home Mortgage Disclosure Act and Equal Credit Opportunity Act, he said. (The bureau released a list earlier this week of the six NCUA rules and regulations it will assume next month. The notice is in the May 31 Federal Register.)
Dreyer also told credit unions to prepare to provide credit score information on risk-based pricing and adverse-action notices. This requirement goes into affect July 21 even though final regulations have yet to be issued.
He also advised credit unions not to count on the CFPB setting different effective dates and compliance deadlines for its rules, as other regulators have some with their rules.
Yesterday’s webcast will be available for six months; go to www.nafcu.org/ondemandwebcasts.