FARMERS BRANCH, Texas (12/18/13)--Saying "there is much to admire in the credit union not-for-profit model," Consumer Financial Protection Bureau Director Richard Cordray met with a group of Texas credit union leaders last week, according to the Cornerstone Credit Union League.
Cordray said he wanted to hear concerns Texas credit unions have about the CFPB, and noted several times that the comments he heard were "fair."
Among the issues discussed were the new CFPB qualified mortgage rules; the new remittance rules; concerns about overregulation; the perception that CFPB lacks appreciation for the credit union "difference," especially considering credit unions did not contribute to the financial crisis; and concerns about upcoming CFPB overdraft regulations, said the Cornerstone Credit Union League (The Advocate Dec. 18).
During the discussion of the remittance rule, Cordray asked for a show of hands by credit unions that had discontinued offering remittances in response to new regulations. Most audience members raised their hands. Cordray then asked how many remittances, on average, each credit union previously had annually processed. The number ranged from a few hundred to a thousand per year. Cordray said he was not aware that the regulation had created such a dramatic impact.
In addressing the qualified mortgage rules set to take effect Jan. 10, Cordray said that in the early months examiners are will not look for perfection, but rather a good faith effort by financial institutions.
One audience member suggested that while finding a good faith effort may be the CFPB's goal, the reality in the field when examiners visit credit unions may be different. Cordray said he had discussed the issue with National Credit Union Administration Chairman Debbie Matz, who agreed with the CFPB's approach. If credit unions have a different experience, he suggested they take the matter to their league, which could intercede with CFPB on their behalf.
One participant asked if the CFPB could consider not only a financial institution's asset size, but also the not-for-profit structure of credit unions in the rulemaking process. Cordray said it was not within CFPB's power to treat credit unions differently in rulemaking, since the agency was created to regulate markets as a whole and on an even-handed basis.