The potential director of the Consumer Financial Protection Bureau told the Senate Banking Committee during last week’s confirmation hearing that new regulatory policy would help credit unions and banks that follow the rules.
“Better regulations help honest businesses,” Richard Cordray said during his testimony, CUTimes.com reports.
Cordray said if nominated, he would streamline regulations when possible. He also described the CFPB’s efforts to combine the disclosure forms required by the Truth in Lending Act and the Real Estate Settlement Procedures Act as a way that the bureau is making things easier for lenders.
Currently the bureau’s top enforcement official, Cordray facing massive confirmation reluctance among Republicans who are insisting the bureau director has too much power and are demanding structural changes.
Cordray maintained the benefits of the bureau throughout his hearing and said credit unions and community banks would be more able to compete when the CFPB regulates nonbank institutions and levels the playing field, according to CUTimes.com.
Although the CFPB only has direct supervisory authority over banks with assets of $10 billion or more, credit unions are worried that the bureau will increase their regulatory burden and result in additional strains on their budgets.
“With the bureau you are seeing a change in a role of the government from focusing and safety and soundness to having an added role in increasing the rules on consumer issues,” Nevada Federal Credit Union President Brad Beal said, CUTimes.com reports.
Cordray told senators during his testimony that he had good relations with the banking and credit union trade associations while serving in various public offices in Ohio, including attorney general.
The Ohio Bankers League has endorsed Cordray’s nomination.
Neither the Credit Union National Association nor the National Association of Federal Credit Unions have taken a position on Cordray's nomination.