There are multiple entities that provide regulatory oversight to credit unions (just ask your compliance officer!). But there is one with a “new sheriff in town” … the Bureau of Consumer Financial Protection (previously known as the CFPB) has a new director. On December 6th the Senate confirmed Kathy Kraninger as the next director of the Bureau. Kraninger replaces Acting Director Mick Mulvaney, and will serve a five-year term as director. And with a new director could come changes for credit unions from this federal regulatory agency.
CUNA wrote to newly confirmed Director Kraninger after her confirmation to highlight key consumer protection priorities for credit unions and open the door to provide any necessary feedback and data. “Consumers lose when one-size-fits-all rules force credit unions to pull back safe and affordable options from the market, pushing consumers into the arms of entities engaged in the very activity the rules were designed to curtail,” the letter reads.
The Bureau is anticipated to revise its current “No Action Letter Policy,” which is intended to reduce regulatory uncertainty over new products/services. While providing clarity is positive, CUNA continues to urge the Bureau to closely monitor the impact its current rules have on credit unions and their members, and to appropriately tailor regulations to reduce burdens or exempt credit unions entirely, as appropriate. In addition, there were several recommendations to the Bureau to incorporate changes in the areas of debt collection, short term/small-dollar lending, remittances, home mortgage disclosures for HELOCs, UDAAP rules, the ability to repay/qualified mortgage requirements, and small-business data collection exemption. Stay tuned!
