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Senators feel pressure to resolve CFPB standstill

Neal WolinDuring Tuesday’s Senate Banking Committee hearing on the oversight of last year’s financial regulatory reform law, Senators gave no indication that they were any closer to resolving the problem of the CFPB stalemate.

Republicans remain opposed to confirming a director until the Obama administration agrees to change the leadership structure of the bureau as well as give outside agencies stronger authority to veto bureau rules, according to NAFCU.org. Democrats, however, are refusing to cave into those demands.

Credit unions are also anxiously awaiting more action from the CFPB so that it can begin to conduct oversight over the activities of non-depository institution providers of consumer financial services.

Credit unions worth more than $10 billion in assets are subject to CFPB examination and enforcement. To alleviate the regulatory burden, these entities want the $10 billion asset-size threshold be indexed for inflation, NAFCU.org reports.

Credit unions are also joining Republicans in their call to restructure the agency in order to guarantee a fair rulemaking process.

During the Senate Banking hearing, Treasury Deputy Secretary Neal Wolin said that the CFPB couldn’t begin to address unfair, deceptive and abusive practices by payday lenders, private student lenders, debt collectors and other nonbank lenders until a director has been placed.

Wolin told Senators that the bureau’s staff has been working on other initiatives as it waits for a confirmation. Such initiatives include developing a new mortgage disclosure form as well as a new form to assist people while comparing student aid offers from colleges and universities, according to NAFCU.org.

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