In December 2018, the Senate confirmed Kathy Kraninger as the CFPB’s new director for a five-year term. Kraninger’s confirmation followed a year of change at the CFPB. In November 2017, former Director Richard Cordray resigned from the CFPB to enter the race for Ohio governor and named his chief of staff, Leandra English, as Deputy Director. That same day, President Trump named Mick Mulvaney, then Director of the Office of Management and Budget and current Acting White House Chief of Staff, as the Acting Director. This sparked a lawsuit by English, which she withdrew when President Trump nominated Kraninger as CFPB director.
Under Acting Director Mulvaney, the CFPB took a different approach to rulemaking and enforcement actions than under former Director Cordray. Mulvaney aggressively pursued a number of NAFCU-supported changes at the CFPB to increase its effectiveness and transparency. Director Kraninger has indicated that she plans to take a more conciliatory approach to running the agency than her predecessor. For example, she halted Mulvaney’s effort to rebrand the agency from “CFPB” to “BCFP.” However, she plans to continue many of Mulvaney’s initiatives to promote transparency and cost-benefit analysis of burdensome regulations.
2019 Regulatory Priorities
NAFCU is excited to work with Director Kraninger to ensure a healthy regulatory environment in which credit unions can grow, thrive and successfully serve their membership. NAFCU haswith Kraninger, highlighting the value of credit unions to the nation’s economy and, in particular, individuals of modest means. At a with Kraninger, NAFCU President and CEO Dan Berger discussed issues relevant to credit unions, including: implementing provisions of the NAFCU-backed Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155), reporting on Home Mortgage Disclosure Act (HMDA) data, ensuring fintech competes on a level playing field with credit unions, the CFPB’s proposed changes to its Payday Rule, and compliance with the TILA/RESPA integrated disclosure (TRID) rule. NAFCU has also urged Kraninger to more actively use the CFPB’s exemption authority to excuse credit unions from certain rulemakings.
In its Fall 2018 rulemaking agenda, the CFPB indicated that implementation of S. 2155, which was signed into law on May 24, 2018, remains a priority. NAFCU hasto the CFPB as to what regulatory actions should be pursued to properly implement S. 2155. NAFCU with CFPB staff to discuss the implementation of S. 2155 and share credit union concerns about various provisions of the new law as well as the CFPB’s debt collection rulemaking. The CFPB also indicated in its Fall 2018 rulemaking agenda that it will issue an assessment of the TRID rule this year. NAFCU has worked to provide credit unions with greater clarity under some aspects of the rule. Moreover, the CFPB plans to continue to engage in pre-rulemaking activities in regard to the debt collection market and expects to release a notice of proposed rulemaking 2019.
As for notable steps taken by the CFPB in 2019 thus far, the CFPB issued proposals to amend and delay the 2017 Payday Rule. NAFCU is supportive of a delay, and will seek an exemption in the revised rule for all iterations of NCUA’s PALs programs. In April, Director Kraninger announced a symposia series to explore consumer protection issues in depth; the first symposium will be focused on clarifying “abusive” under unfair, deceptive or abusive acts or practices (UDAAP). NAFCU has long advocated for the CFPB to issue specific guidance on prohibited practices so that financial institutions have more clarity on this issue. Also in April, the CFPB issued a request for information on its remittance rule, which is a positive sign for the industry. NAFCU has long expressed concerns with the rule’s highly burdensome compliance costs, which has resulted in many credit unions ceasing to offer remittance transfer services due to prohibitively high costs. In May, the CFPB issued a proposed rule to adjust collection and reporting thresholds under the Home Mortgage Disclosure Act (HMDA), as well as an advance notice of proposed rulemaking to gather information on the costs and benefits of reporting certain data points under HMDA.