Group calls on CFPB to freeze new regs

Group calls on CFPB to freeze new regs
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The head of the nation’s leading association of credit unions is calling on the Consumer Financial Protection Bureau (CFPB) to freeze all pending rules in the wake of Tuesday's election.


In a letter Friday, Jim Nussle, president and CEO of the Credit Union National Association (CUNA) asked CFPB Director Richard Cordray to impose an immediate moratorium on all of its pending and future rulemakings unless they provide corrective regulatory relief.

Nussle said voters delivered an important message when they elected Donald Trump over Hillary Clinton: “They do not feel their voice is being heard by federal policymakers and they want that to change.”

“Many of these consumers continue to face financial challenges in their everyday life and are seeking solutions for their financial needs,” he wrote.

“Policies coming out of Washington that limit consumers' ability to obtain safe credit, or make it difficult and more expensive to access products and services from their community financial institution such as their credit union, are not making their lives better.

Nussle, a former House Budget Committee chairman who also served as director of the Office of Management and Budget, claims credit unions are bogged down by overly burdensome regulations. In 2014, alone he said the total financial impact of regulations and lost revenue on credit unions was $7.2 billion.

“Unfortunately, CFPB rulemakings on mortgage reporting, underwriting and servicing, remittances, and other already consumer friendly credit union financial products has stifled credit unions’ ability to effectively and efficiently serve their members,” he said.

“In particular, these rules have impeded credit unions’ ability to serve members with lower credit scores, or those facing financial difficulties.”

Trump has promised to put a moratorium on new agency rulemakings once in office and make deep cuts to existing regulations.

CUNA has been pushing CFPB to withdraw its proposed rules for payday loans or exempt credit unions.