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Warren CFPB will work for reduced reg burden
WASHINGTON (2/4/11)—The Consumer Financial Protection Bureau (CFPB), once it is fully organized later this year, will work to reduce some regulatory burdens faced by credit unions and other financial institutions and will review the impact of its own rules on credit unions and other small financial service providers, CFPB architect Elizabeth Warren said in a recent letter to Rep. Randy Neugebauer (R-Texas). Warren’s letter was prompted by a Jan. 18 request from Neugebauer for more information on the development and future operations of the CFPB. Neugebauer, who serves on the House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit, also discussed the CFPB during an early January meeting with Warren. In Warren's letter, she said she shares Neugebauer’s “concern for promoting consistent regulation and minimizing implementation burdens,” and added that the CFPBs dialogue with the National Credit Union Administration (NCUA) and other financial regulators is “imperative” as the CFPB transitions into its own regulatory activities. The CFPB will take over a number of regulatory roles from the Federal Reserve and other agencies on July 21. The NCUA will remain mostly independent, however, as credit unions holding under $10 billion in assets will not be examined by the pending CFPB. The NCUA will have a seat on a pending regulatory council. CFPB representatives have discussed the agency’s goals and future work with credit unions, leaders of other financial institutions, and individual consumers as it works toward the July 21 deadline. The Credit Union National Association has met with the CFPB as well, stressing the need to minimize credit unions' regulatory burdens, costs and requirements. CUNA has delivered commentary on how consumer financial regulations can be improved and how consumer financial disclosures can be pared down, and has noted that improving the transparency and consumer-friendliness of many financial products would benefit credit unions, holding competitors to the same high standards generally used by credit unions in these core areas. Warren also outlined the CFPB’s structure in the letter. The CFPB will have six divisions, with respective groups addressing consumer engagement and education, supervision and enforcement, research markets and regulations, legal matters general counsel, external affairs, and the organization’s own internal operations. The CFPB has also set up its own website ahead of the July 21 deadline, and is seeking additional outside input via social media outlets. (See related story: CFPB launches website, seeks Youtube videos)
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