WASHINGTON – CUNA President/CEO Bill Cheney discussed credit union concerns about the CFPB’s remittances rule, qualified mortgage proposal, and regulation of overdrafts with CFPB Director Richard Cordray in a Tuesday conversation initiated by the CFPB.
The agency director regularly contacts Cheney to stay abreast of credit union viewpoints.
Cheney during the discussion noted that the implementation costs of the CFPB's remittances rule would make it untenable for some credit unions, possibly causing them to stop providing a valued service to their members.
The CFPB last week announced that financial institutions that provide 100 or fewer remittance transfers per year would be exempted from the terms of the rule. The agency has estimated that this exemption would protect 80% of credit unions, but credit unions that are not exempted are very concerned about the rules, Cheney said.
Cheney emphasized that the remittance rules have not taken effect yet, and asked Cordray to discuss remittance concerns with credit unions.
The CUNA CEO said the association is also developing a list of overdraft best practices and wants to work with the CFPB, but credit unions are concerned that reasonable overdraft programs will be overregulated.
Cheney also reiterated CUNA supports the safe harbor approach in the CFPB's pending qualified mortgage regulations.
Cordray indicated he would like to work with CUNA and credit unions on these issues going forward.
"We had a productive discussion, and I appreciate the outreach from the CFPB director," Cheney said afterward.
CUNA and the CFPB have announced a joint Webinar to outline the effects of recent CFPB actions will have on credit unions and resources needed to plan for the proposed regulatory changes. The two-part event is scheduled for August 30 and September 6. Attendees will be able to raise questions and voice concerns about the recent CFPB actions. The Webinar will be archived and available for those unable to participate live.
Registration and additional information is available at: http://www.cuna.org/training-education/event/EW083012/