WASHINGTON—A bright spot from the CFPB? Maybe.
CUNA noted that a recent CFPB rule is a positive sign that the Bureau could be paying attention to focused rulemaking, considering the impact of its rulemaking on smaller financial institutions.
CUNA's Deputy Chief Advocacy Officer and Senior Counsel, Elizabeth Eurgubian, pointed out that the CFPB’s interim final rule that expands exceptions for small creditors enables more small FIs to originate balloon mortgage loans that are qualified mortgages as well as higher-priced mortgage loans without the additional escrow requirement.
“This was a very big win for smaller credit unions and definitely a positive,” said Eurgubian, noting that CUNA last week sent a comment letter to the CFPB in response to the rule. “This is definitely a positive example of focused rulemaking and something we want the CFPB to pursue further in their future rulemaking. We thank the CFPB for this rulemaking—a rule that allows credit unions to effectively serve their members, free from regulatory restraint.”
Both NAFCU and CUNA have been vocal in urging the CFPB to do more to respond to the regulatory burden on credit unions, maintaining that Congress gave the Bureau that authority under Dodd-Frank.
Both trade associations have shared concerns that CFPB Director Richard Cordray does not fully understand the issues the trade associations and credit unions have brought to him about regulatory burdens stemming from the Bureau’s rulemakings. During CUNA’s Governmental Affairs Conference in February, Cordray first thanked CUs for not being responsible for contributing to the banking practices that led to the Great Recession, but then added that he felt credit unions should fall under the Bureau’s rulemaking.