Cheney Pushes Cordray to Ease Regulatory Burdens

With Richard Cordray’s nomination hearing before the Senate Banking Committee just weeks away, Credit Union National Association (CUNA) President/CEO Bill Cheney wrote a letter encouraging the candidate for Consumer Financial Protection Bureau (CFPB) director to minimize new regulations and work to ease the regulatory burden on credit unions and other small financial institutions.

Cheney urged Cordray to work alongside the credit unions to help them better serve their customers, and he reiterated his recommendation that the bureau create an Office of Regulatory Burden Monitoring to help the agency track the impact of its regulations and ultimately “mitigate the cumulative regulatory burden faced by credit unions and other small financial institutions.”

Cordray’s nomination does give credit unions cause for optimism. Ohio Credit Union League representatives have reported working closely with Cordray to develop various financial literacy campaigns throughout Ohio. He also filed suit against Bank of America in 2009 on behalf of a group of five public pension funds over the bank’s acquisition of Merrill Lynch & Company.

Cordray served as the attorney general and treasurer of Ohio before being named the CFPB’s assistant director for enforcement in January. He was announced as President Barack Obama’s nominee for CFPB director in July, but Senate Republicans are threatening to block any nomination for a CFPB director until the bureau’s structure is changed. The House has passed legislation appeasing these demands, including the creation of a five-member board to run the bureau, but Obama and Senate Democrats remain opposed.

Elizabeth Warren, special adviser to the CFPB, said recently that Corday “has a proven track record of fighting for families during his time as head of the CFPB enforcement division, as attorney general of Ohio, and throughout his career.”

In his letter, Cheney went on to praise the CFPB’s having revised and combined Truth-In-Lending-Act and Real Estate Settlement Procedures Act forms in a single mortgage disclosure, calling it a “positive, useful approach” to collaborating with stakeholders.

The CFPB completed the third of five mortgage disclosure comment rounds last week. CUNA has discussed this and other topics with the board as part of an ongoing conversation.

 

Questions? Contact Director of Regulatory Advocacy Jaycee Winn: 503.350.2209, jwinn@nwcua.org.

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