CUNA asks the Fed to consider moratorium on Reg Z changes
10/28/2010 04:26 pm
Wednesday CUNA President/CEO Bill Cheney
sent a letter to Treasury Secretary Timothy Geithner, Federal Reserve Board Chairman Ben Bernanke, and Assistant to the President Elizabeth Warren, urging support for CUNA's position that the Fed should cease issuing new Reg Z proposals and halt any current ones because the developing Consumer Financial Protection Bureau (CFPB) will be regulating Reg Z, along with a number of consumer protection statutes, beginning next year.
Despite this transition that is already under way to the CFPB, the Fed continues to issue multiple Reg Z proposals that CUNA feels will be costly for credit unions and ultimately confusing for consumers in a number of areas. One example, the Fed and the CFPB are already working on how to streamline Reg Z and RESPA disclosures, an undertaking that is required by the Dodd-Frank Act. There is a real concern that the Fed’s persistence in issuing new Reg Z proposals could undermine or minimize efforts to streamline Reg Z and RESPA requirements.
The LSCU currently has a comment call request out to credit unions about the newest Reg Z proposals. Credit unions should continue to let the LSCU and the Fed know their thoughts on the proposals. To see the comment call and learn more about Reg Z proposals, head to the
LSCU's Regulatory Action Calls and Comment Letters section of the website.