WASHINGTON—On the same day the CFPB told credit unions they should be subject to the Bureau’s rules, NAFCU applauded the efforts of House representatives to remove CUs from CFPB oversight.
Reps. Adam Schiff (D-CA) and Steve Stivers (R-OH) led a bipartisan effort in the House to gather signatures for a letter urging CFPB Director Richard Cordray to use the Bureau’s Dodd-Frank Act authority to exempt credit unions from certain rulemakings.
The bipartisan letter notes that a Government Accountability Office report recently found that financial services have been limited or discontinued by many community-based financial institutions due to new regulations, particularly those governing remittance transfers. Reps. Pete Aguilar (D-CA) and Ed Royce (R-CA) have also agreed to sign the letter. Stivers and Royce are members of the House Financial Services Committee.
“We appreciate Representatives Schiff’s and Stivers’ leadership in championing this matter and thank Representatives Aguilar and Royce for their important support for alleviating credit unions’ overwhelming regulatory burden,” said NAFCU President and CEO Dan Berger.
The letter also praises credit unions and community banks for their focus on local lending and community development. The signers will urge Cordray to use CFPB’s authority under Section 1022(b)(3)(a) in the Dodd-Frank Act to adapt regulations by allowing it to exempt “any class” of entity from its rulemakings.
NAFCU encourages credit unions to contact their members of Congress to ask them to sign the letter by the March 4 deadline.