CFPB News and Updates
The following articles relate to recent updates from the Consumer Financial Protection Bureau (CFPB).
CFPB's Director Testifies Before Senate Banking Committee
On Thursday, September 13, 2012, Consumer Financial Protection Bureau's (CFPB) Director Richard Cordray testified before the Senate Banking Committee on the agency’s semi-annual report. While many on the Committee were supportive of Director Cordray and the agency’s progress to date, Senator Richard Shelby (R-AL) expressed strong concerns regarding what he viewed as the CFPB ignoring or attempting to re-write the law (the Dodd-Frank Act) in utilizing its exemption and modification authority under the Truth in Lending Act and other provisions of the Dodd-Frank Act. Director Cordray responded that the Bureau “cannot ignore or re-write” the laws that Congress mandates, but indicated that where appropriate, the agency intends to use its exemption authority to potentially exempt certain smaller institutions such as community banks and credit unions from certain regulatory provisions “where they don’t make sense.”
On numerous occasions, Credit Union National Association (CUNA) has met with Director Cordray and urged that the Bureau do more by way of rulemaking to not place further regulatory burdens upon credit unions, and Director Cordray once again admitted during questions and answers that “small providers such as community banks and credit unions did not create the problems that led to the financial crisis.” For a copy of Director Cordray’s written testimony, click here.
FedGlobal ACH Update on CFPB Remittance Transfers Final Rule
The Federal Reserve Banks have provided an update on how their FedGlobal ACH product would meet the Consumer Financial Protection Bureau's (CFPB) remittance transfers final rule’s requirements, which are effective on February 7, 2013. According to the update, FedGlobal ACH would enable its customers to provide estimated disclosures, and would also provide access to a tool to facilitate relevant disclosures.
CFPB Names Credit Union Advisory Council
While not required by law, the Consumer Financial Protection Bureau (CFPB) has appointed a Credit Union Advisory Council (CUAC), a move Credit Union National Association (CUNA) has urged the agency to take since it was first established in July 2011. CUNA and leagues, including the Missouri Credit Union Association (MCUA), support the list selected:
Credit Union Advisory Council Members:
- Bernard Balsis, IEG Federal Credit Union, Hawaii
- Rose Bartolomucci, Towpath Credit Union, Ohio
- Gary Bell, Cooperative Federal Credit Union, California
- John Buckley, Gerber Federal Credit Union, Michigan
- Carla Decker, District Government Employees Federal Credit Union, Washington, D.C.
- Ron Ehrenreich, Syracuse Cooperative Federal Credit Union, N.Y.
- Kevin Foster-Keddie, Washington State Employees Credit Union, Washington
- Mitchell Klein, Police and Firemen Federal Credit Union, Pennsylvania
- Lily Lo, Northeast Community Federal Credit Union, California
- Maria Martinez, Border Federal Credit Union, Texas
- Marcus Schaefer, Truliant Federal Credit Union, North Carolina
- Camille Shillenn, Unified People’s Credit Union, Wyoming
- Helen Godfrey Smith, Shreveport Federal Credit Union, Louisiana
- Gregg Stockdale, 1st Valley Credit Union, California
- David Wright, Services Center Federal Credit Union, South Dakota
Several of these individuals are currently serving on CUNA committees and others have served recently. Rose Bartolomucci is a member of CUNA’s State Issues Subcommittee, Ron Ehrenreich, is a member of CUNA’s Consumer Protection Subcommittee, Marc Schaefer, is a member of CUNA’s World Leadership Committee, and Maria Martinez, is a member of CUNA’s Hispanic Outreach Committee. CUNA also worked recently with Carla Decker, a former nominee to the National Credit Union Administration Board.
The purpose of the Council is to “advise generally on the Bureau’s regulation of consumer financial products or services and other topics assigned to it by the Director…[and] the scope of its activities shall include providing information, analysis and recommendations to the Bureau,” according to the Charter of the CUAC. The total number of members will be at least 15 and no more than 20. Members will serve for a two-year term and cannot succeed themselves. Members will not be compensated or reimbursed for expenses. Meetings will not be held in public; four meetings a year are anticipated, with two of them at the CFPB’s headquarters in Washington, DC.