McWatters letter requests burden reduction from CFPB director
Yesterday, NCUA Chairman J. Mark McWatters wrote a letter to embattled CFPB Director Richard Cordray in regard to credit union compliance with CFPB rules specifically in regard to the Home Mortgage Disclosure Act (HMDA), as well as the Unfair, Deceptive and Abusive Acts or Practices (UDAAP) requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
McWatters explains that regulatory relief in these areas “would lessen the financial burden on the credit union community, thereby enhancing the capital positions of credit unions and the NCUA’s efforts to ensure the safety and soundness of the NCUSIF.”
McWatters urged Cordray exempt credit unions from unnecessary burden through use of a statute in the Dodd-Frank Act that allows exemption based on asset size and volume of transactions for financial institutions.
He went on to argue against implementation of burdensome HDMA records which would be imposed beginning in 2018 and requiring credit unions to report data to include, but not limited to, meeting a minimum asset level, originating at least 25 closed-end mortgage loans in each of the previous two years, and originating at least 100 open-end lines of credit.