McWatters to Cordray: Do more to help CUs

May 25, 2017 at 8:54 am Leave a comment


NCUA board chairman H. Mark McWatters yesterday sent out a forceful letter to Richard Cordray urging him to categorically exempt credit unions from many of the pending HMDA mandates, and called on it to clarify the scope of its Unfair and Deceptive Acts and Practices (UDAP) powers in guidance or regulations. This letter is proverbial music to the ears for those of us who believe that the benign dictator of consumer finance and former supreme court clerk has either been too cautious or too unwilling to utilize his authority to exempt credit unions from Dodd- Frank mandates.

Here is my favorite quote; “Section 1022(b)(3)(A) of the Dodd-Frank Act, provides that the bureau may exempt any class of persons, service providers or consumer financial services from certain regulations. Use of this permitted, yet underutilized statutory authority is appropriate to address compliance costs and the unintended consequences of limiting access to affordable financial services for many millions of middle class credit union members, through the enactment of needless regulatory burdens.”

Specifically he would like to see the threshold for HMDA compliance, which the Bureau has already raised, further increased. The Bureau’s UDAP powers have allowed it to regulate through litigation even as it hesitates to promulgate new regulations in the Age of Trump. So NCUA is spot on in urging the Bureau to explain how exactly it interprets its authority under Dodd- Frank.

WWF Politics

This has absolutely nothing to do with CUs but I couldn’t resist commenting on this bizarre story, involving a Republican Congressional candidate who apparently body slammed a reporter who had the audacity to question him about healthcare costs. Now, if America wasn’t going insane, I would say that an individual capable of responding to issues of public concern, with acts of violence, isn’t qualified to serve in the US Congress. But in an age when politicians describe newspapers as fake news I’m not so sure what the outcome of this Montana special election will be. It makes me wonder; what Thomas Jefferson would say?

Entry filed under: General, Regulatory. Tags: .

BS(A) Strikes Again An Appealing Proposition

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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