Newsroom

February 13, 2018

NAFCU recommendations included in CFPB's strategic plan

The CFPB on Monday released its strategic plan for 2018-2022, which contains various NAFCU-supported initiatives, including periodic reviews of regulations to help identify ways to reduce the regulatory burden, cost analysis of new rules and strengthened cybersecurity.

CFPB Acting Director Mick Mulvaney indicated the strategic plan, with an updated mission and vision for the bureau, is meant to ensure the CFPB doesn't abuse its powers by not expanding beyond its statutory responsibilities.

Of note in the CFPB's strategic plan are:

  • An objective to "regularly identify and address outdated, unnecessary, or unduly burdensome regulations in order to reduce unwarranted regulatory burdens," which includes periodic reviews of individual regulations. NAFCU earlier this year asked the bureau to review all regulations; the bureau has already delayed some rules, including its prepaid rule, to review further.
  • A strategy to "carefully evaluate the potential benefits and costs of contemplated regulations" as the bureau ensures transparency and efficiency in the consumer financial services market. NAFCU has long advocated for the CFPB to reevaluate its approach to rulemaking as increasing compliance costs make it difficult for credit unions to serve their members.
  • An objective to "safeguard the bureau's information and systems" by maintaining a strong cybersecurity program and bringing its IT investments in line with federal security standards and priorities. NAFCU continues to be a leader in calling for a national data security standard, and has urged the CFPB to pull back its Home Mortgage Disclosure Act (HMDA) data collection points in order to protect borrower privacy.

NAFCU President and CEO Dan Berger, in a letter to Mulvaney earlier this year about the association's 2018 priorities, asked that the bureau: review all regulations, increase use of its exemption authority for credit unions under the Dodd-Frank Act, revise the definition of qualified mortgage, review the reputation risk associated with its Consumer Complaint Database, revisit its HMDA requirements and pull back efforts to alter overdraft programs.

NAFCU will continue to engage with Mulvaney and CFPB staff to ensure regulations hold bad actors in the financial services industry accountable without burdening credit unions and other good actors.