CFPB Improvements

Recent Activity

Changing Leadership

Rohit Chopra was sworn in as CFPB Director in October 2021, replacing Acting Director Dave Uejio. In testimony before the House Financial Services and Senate Banking Committees, Director Chopra described his priorities for the CFPB as continuing equitable pandemic relief efforts, monitoring large tech companies’ payment systems, strengthening enforcement against repeat offenders, and promoting relationship banking. Former Director Kathy Kraninger, who had been nominated by President Trump and confirmed by the Senate in 2018, resigned in January 2021.

Regulatory and Legislative Priorities

NAFCU is excited to work with Director Chopra to ensure a healthy regulatory environment in which credit unions can grow, thrive and successfully serve their membership. Previously, NAFCU shared credit unions' concerns and priorities with Director Kraninger, and highlighted the value of credit unions to the nation’s economy and, in particular, individuals of modest means.

NAFCU supports H.R. 6038, the CFPB-IG Act of 2021, legislation introduced by Representative Blaine Luetkemeyer (R-MO) that would increase CFPB oversight by creating an Office of the Inspector General within the CFPB. Currently, the CFPB shares an Inspector General with the Federal Reserve. Additionally, in October 2021, NAFCU wrote to the House Financial Services Committee and the Senate Banking Committee preceding their semi-annual oversight hearings of the CFPB. NAFCU advocated for the CFPB to exercise its discretion to provide regulatory relief to credit unions, clarify UDAAP authority, coordinate examinations with the NCUA, and increase oversight of fintechs.

The CFPB recently took action on several notable rulemakings/issues, and NAFCU remains actively engaged to ensure credit unions’ concerns are taken into account. NAFCU published two new issue briefs to provide further information on the CFPB’s recent activity and NAFCU’s advocacy priorities.

  • Section 1033 Consumer Access to Financial Records: The CFPB will hold a Section 1033 Small Business Regulatory Enforcement Fairness Act (SBREFA) panel in advance of issuing a proposed rule. NAFCU has advocated for a minimum burden on credit unions and a fair distribution of costs, data security, and data privacy responsibilities.
  • Section 1071 Small Business Lending Data Collection: The proposal would require credit unions and credit union service organizations that originated at least 25 covered small business credit transactions in each of the two preceding calendar years to collect and report small business credit application data, including data related to the ethnicity, race, and sex of small business applicants’ principal owners. NAFCU’s comment and a joint letter NAFCU signed urged significant changes to the proposed rule to reduce compliance burdens imposed on credit unions.
  • Fees: The CFPB invited comment on credit card late payment fees and also sought comment on a wide range of other fees charged by financial institutions, which the CFPB termed “junk fees.” NAFCU responded to the credit card late fee inquiry to encourage the CFPB to use its authority to pursue truly bad actors, simplify fee disclosures, and to explore other alternatives to help consumers escape cycles of indebtedness. NAFCU objected to the CFPB’s characterization of financial institution fees as “junk fees” and urged the Bureau not to second-guess credit unions’ business judgment.
  • UDAAP: The CFPB’s revised examination guide for UDAAP indicated that the Bureau will consider discrimination as an “unfair” practice for all financial products and services, not just credit products.

In its Spring 2022 rulemaking agenda, the CFPB listed a proposed rule on automated valuation models and other items carried over from earlier agendas.