November 06, 2017

Cordray and NAFCU sit down to talk reg relief

CFPB Director Richard Cordray will be at NAFCU headquarters today for a meeting with the association's board of directors to discuss various regulatory issues affecting the credit union industry, including the Home Mortgage Disclosure Act (HMDA), overdraft, and unfair, deceptive, or abusive acts or practices (UDAAP).

The board today may also go over industry highlights from the association's newly released 2017 NAFCU Report on Credit Unions.

Today's meeting will also include a discussion of credit unions' regulatory burden and how the CFPB can better use its exemption authority for the industry. The NAFCU Board today will strongly urge the bureau to avoid promulgating any rule that would put any credit union offerings in jeopardy or that would curtail service to their 110 million members. NAFCU has also pushed for more clarification – through the use of guidance – on the bureau's approach to UDAAP.

NAFCU will also discuss the regulatory burden for credit unions related to HMDA. This year, the CFPB did increase the threshold at which credit unions are required to report home equity lines of credit (HELOCs) from 100 to 500 loans through calendar years 2018 and 2019. NAFCU has asked the bureau for an exemption from HMDA reporting for all HELOCs or, in the alternative, make the 500-loan threshold permanent – a request that will likely be reiterated during today's meeting.

The NAFCU Board will also share with Cordray their thoughts on overdraft and other possible topics of future rulemakings, such as first-party debt collection.

The CFPB's arbitration rule, which was recently overturned by Congress, may also come up during today's meeting. While NAFCU strongly supports consumer protections, the association repeatedly told the bureau that credit unions were not the bad actors this rule was meant to target. NAFCU President and CEO Dan Berger was present at the White House to watch the undoing of this rule.