November 07, 2017

NAFCU Board, Cordray talk reg concerns, burdens

Various regulatory issues affecting the credit union industry, including overdraft, the Home Mortgage Disclosure Act (HMDA) and unfair, deceptive, or abusive acts or practices (UDAAP), were discussed Tuesday by the NAFCU Board and CFPB Director Richard Cordray at NAFCU's headquarters.

"NAFCU and its board thank Director Cordray for his willingness to listen to our concerns and the regulatory issues impacting credit unions," said NAFCU President and CEO Dan Berger. "Despite the industry showing signs of growth in the past year, heavy regulation continues to take its toll. NAFCU will remain in close contact with the bureau, encouraging use of its existing exemption authority so credit unions can continue to deliver exceptional service to their 110 million members."

Cordray meeting 2
NAFCU Board Chair Richard L. Harris, president and CEO of Caltech Employees Federal Credit Union, with CFPB Director Richard Cordray. (NAFCU photo)

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

NAFCU Board members on Tuesday also discussed the recent Equifax data breach and the need for supervisory oversight of the credit reporting agencies.

This is the seventh consecutive year that NAFCU has met with CFPB leadership to discuss critical issues affecting the credit union industry.