CFPB Director Cordray reaches out to NAFCU to discuss regulatory issues

Richard Cordray

Richard Cordray

CFPB Director Richard Cordray recently phoned Fred Becker, the president and CEO of the National Association of Federal Credit Unions, to discuss a number of regulatory issues highlighted by the organization.

Cordray and Becker discussed the CFPB’s report and supervisory focus on payday lending, the ability-to-repay rule and the agency’s recently-issued final rule on remittance transfers.

NAFCU has pressured the watchdog to increase the number of transactions that would exempt credit unions from the new remittance rules and provide an adequate time for the institutions to comply. The CFPB recently delayed the rule’s implementation for six months with an effective date of Oct. 28, but the rule still has a transaction threshold of 100.

In regard to the ability-to-repay—or qualified mortgage—rule, Becker said many of NAFCU’s member institutions have indicated that they will limit their mortgages to meet QM standards.

Cordray and Becker also discussed the CFPB’s enforcement and regulatory guidance. NAFCU has urged the agency to establish a formal process for individual institutions to seek guidance and clarification.

The CFPB has published compliance guides for small financial institutions but has chosen not to issue legal opinion letters on certain rules.

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