WASHINGTON (8/31/12)--Credit union callers and Credit Union National Association (CUNA) President/CEO Bill Cheney noted the growing concerns about the regulatory burdens faced by credit unions in a Thursday audio conference with Consumer Financial Protection Bureau (CFPB) Director Richard Cordray.
During the call, Cheney noted that, in his travels among credit unions and to their gatherings, many have told him they are overwhelmed by regulations. He said that credit unions operated differently from other financials before, during, and after the financial crisis and that "nobody needs to protect consumers from credit unions."
To that end, the CUNA president urged the CFPB director to help credit unions avoid any unneeded regulations, where possible. He pointed out that, while many of the rules written by the CFPB are mandated by the Dodd-Frank Wall Street Reform Act, the agency also has broad authority to exempt credit unions and other financial institutions from resulting regulations.
Credit union representatives who participated in the call also discussed their own issues with the CFPB director. One credit union representative said the CFPB does not directly notify regulated entities when a new proposed regulation has been released, and asked if the CFPB could reach out to institutions electronically.
He noted that some federal regulators provide information on their regulatory proposals to e-mail list recipients, and said that the CFPB could help credit unions and their compliance officers by taking similar actions.
Another call participant said earlier notification of proposed rule releases would help give credit unions the time needed to fully formulate their thoughts on a given proposal before the comment deadline passes. While many regulators tie open comment deadline dates to the date that their new rules are published in the Federal Register, that is not currently the CFPB's practice.
The CFPB's work with the National Credit Union Administration and other regulators, and the agency's pending mortgage regulation changes, were also topics of discussion during the call. Participants also called on the CFPB to take additional actions to gauge a given regulation's short- and long-term impacts on consumers and financial institutions alike.
The CFPB will again be the central topic at a Sept. 6 CUNA webinar. That webinar, which will feature CUNA Deputy General Counsel Mary Dunn, CUNA Senior Assistant General Counsel Jared Ihrig and Andrea Stritzke, vice president of regulatory compliance for PolicyWorks, will address the CFPB's proposed mortgage rules. This webinar will also focus on the agency's proposed "higher-risk" mortgage appraisal rule and the recently approved Regulation B appraisal proposal.
To register for the Sept. 6 webinar, use the resource link.