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Credit Unions Hear from CFPB Director

Credit union representatives took part in a conference call with CFPB Director Richard Cordray to ask questions and raise concerns about recent regulations. The call lasted an hour and a range of issues was discussed including the mortgage-related proposals and international remittances. In response to a question about the agency’s authority to delay compliance of rules so that institutions can get ready, he said that unless otherwise required by statute, they have a strong preference for setting an implementation date of 2014 for many of the mortgage-related provisions they have proposed. Cordray said the TILA-RESPA “Know Before You Owe” combined forms proposal would be adopted likely in early 2013. He said other mortgage related proposals would be approved by January.

However, where the statute does not set an implementation date, he said, the agency would go with “what is reasonable.”  He said they want to be mindful of the need for ample time to comply and will be “listening closely” to operational concerns that could support longer times to comply. Cordray said the agency has set up a complaint procedure for consumers, but that any complaints for institutions with assets of $10 billion or under would be directed to their prudential regulator. 

A question arose about the mortgage servicing proposal and concerns about monthly statements that servicers will be required to send to the borrowers. Cordray said he was aware of those concerns and noted that there is an exemption for smaller servicers that 1) service no more than 1,000 mortgages and 2) that they either own or originated.  He said they were willing to look at these issues and there is no justification for the agency to impose burdens on small servicers. Director Cordray will announce the new Consumer Advisory Board and Credit Union Advisory Council “within about two weeks” and it may be sooner.

During the call, Director Cordray reaffirmed his invitation for CUNA to organize a small group of credit unions to meet with him at the CFPB next month on remittances. Credit unions are encouraged to complete a survey on concerns with the final remittances rule. The survey asks for optional identifying information so CUNA may follow up with those who respond and organize the small group quickly. Please check out the survey here.

In addition, a separate credit union group will be assembled on the definition of "qualified mortgages" under the ability to repay proposal. The group, which is being assembled soon, will meet with Cordray to address concerns about how the agency’s treatment of a “qualified mortgage” could impact mortgage lending for credit unions.