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:

  • Home Mortgage Disclosure: CFPB finalized adjustments to data collection and reporting thresholds in April 2020. NAFCU staff and member credit unions met with the CFPB to discuss HMDA-related issues in March 2021. CFPB’s latest regulatory agenda did not include any new rulemaking efforts.
  • Debt Collection: In January 2021 the CFPB finalized its debt collection rule for third-party debt collectors, which established a strict liability standard and prohibited legal actions on time-barred debts. The rule also requires debt collectors to contact consumers about debts before passing information to a credit reporting agency. NAFCU provided a summary and analysis of the rule in a Final Regulation. An earlier final rule, published in November 2020, establishes time, place, and manner restrictions for third-party debt collectors’ communications with consumers and provides consumers with the ability to designate a means of communication that debt collectors cannot use to contact them.
  • Qualified Mortgage Definition: The CFPB issued the QM final rule in December 2020. The rule governs how mortgage lenders determine a borrower’s ability to repay and establishes other criteria. NAFCU analyzed the details of the rule in a Final Regulation. Additionally, the CFPB published a separate final rule to set the definition of a “seasoned qualified mortgage.” The effective date for the QM rule was delayed to October 1, 2022.
  • UDAAP: In March 2021, Acting Director Uejio rescinded the CFPB’s policy statement on the “abusive” prong of UDAAP, which was initially released in January 2020. NAFCU continues to advocate for regulatory certainty on the meaning of “abusive” acts or practices.
  • Section 1071: The CFPB released a proposed rule on data collection and reporting requirements for small business lending under Section 1071 of the Dodd-Frank Act in September 2021. The proposal, which NAFCU analyzed in a Regulatory Alert, would apply to credit unions and CUSOs that have originated 25 or more small business credit transactions in each of the past two years. In January 2022 NAFCU submitted its comment on this rule to the CFPB, urging the Bureau to significantly increase the proposal’s loan-volume thresholds, exempt certain transactions, and adopt a longer compliance schedule, among other changes. NAFCU also submitted a joint comment letter with CUNA on this issue. Previously, NAFCU staff met with the CFPB in July 2021 to discuss this rulemaking effort. This followed the CFPB’s release of an outline of proposals for implementing this requirement. NAFCU is urging the CFPB to exempt credit unions from any data collection requirement under Section 1071.
  • Section 1033: In October 2020 the CFPB published an advance notice of proposed rulemaking on consumers’ rights to access their financial records under Section 1033 of the Dodd-Frank Act. NAFCU’s comment to the CFPB emphasized the need for protecting data privacy and security as well as ensuring credit unions are not overly burdened with compliance costs. NAFCU staff met with the CFPB to discuss this issue further in March 2021.

In its Fall 2021 rulemaking agenda, the CFPB listed a proposed rule on automated valuation models and other items carried over from its Spring 2021 agenda.