Removing Barriers Blog

Chairman McWatters Asks CFPB to Exempt Credit Unions
Posted July 07, 2017 by jbrunson

Earlier this week, NCUA Chairman McWatters sent another letter to CFPB Director Cordray.  The letter requests that the CFPB provide an exemption for credit unions with more than $10 billion in assets from the CFPB’s examination and enforcement authority.  

In his letter, Chairman McWatters reiterated the differences between credit unions as not-for-profit, consumer-owned financial institutions versus the for-profit, investor-owned financial institutions.  In the current structure, credit unions with over $10 billion in assets are subject to CFPB examinations in addition to examinations by their prudential regulator, the NCUA, and state regulators if they are state chartered.  As such, federally-insured credit unions should not be subjected to the aggressive punitive fines by the CFPB that are negatively impacting the consumer/member owners of their not-for-profit credit union.   

In May, then Acting Chairman McWatters sent a letter to the CFPB urging it to use its exemption authority and to provide regulatory relief to credit unions. 

CUNA appreciates and supports Chairman McWatters' efforts to address burdensome examinations and regulatory requirements from the CFPB.  CUNA has been actively engaged on a number of fronts to enact common sense regulation for America’s credit unions and their 110 million members.