Conversation with CFPB's Director Richard Cordray
Bill Cheney, president/CEO of Credit Union National Association (CUNA) discussed concerns about the Consumer Financial Protection Bureau’s (CFPB) pending remittances rule and qualified mortgage proposal with CFPB Director Richard Cordray.
During the discussion it was noted that the implementation costs of the CFPB’s remittances rule would make it unworkable for some credit unions, possibly causing them to stop providing a valued service to their members.
The CFPB’s final remittance transfer rule, which is scheduled to take effect on Feb. 7, would require remittance transfer providers to disclose the exchange rate, all fees associated with a transfer, and the amount of money that will be received on the other end. Remittance transfer providers will also be required to investigate disputes and correct errors.
The CFPB announced that financial institutions that provide 100 or fewer remittance transfers per year would be exempted from the terms of the rule. The CFPB has estimated that this exemption would protect 80% of credit unions, but credit unions that are not exempted are very concerned about the rules. Remittance rules have not taken effect yet, and Director Cordray was asked to discuss remittance concerns with credit unions.
CUNA supports adding a safe harbor to the CFPB’s pending qualified mortgage regulations. Director Cordray indicated he would work with CUNA and credit unions on this issue going forward. CUNA is also developing a list of best overdraft practices and wants to work with the CFPB, but credit unions are concerned that reasonable overdraft programs will be overregulated.