House Financial Services Chairman Jeb Hensarling's revisedDodd-Frank overhaul bill abandons the idea of converting the CFPBinto a five-member commission – a plan consistently advocated bycredit union trade groups.

Instead, the plan calls for the CFPB to be governed by a singledirector with diminished powers.

However, NAFCU and CUNA remain divided over whether the NCUA would operate more effectively under afive-member board Hensarling proposed last year, or under athree-member board he now appears to favor.

Hensarling has outlined his proposed changes to the Financial CHOICE Act he introduced lastyear in a memo to his “Financial Services Leadership Team.”

Those modifications include the NCUA board and CFPB changes.

NAFCU continues to support a three-member NCUA board, saidCarrie Hunt, the organization's vice president of governmentalaffairs and general counsel.

She said that there would be additional costs to credit unionsif the number of board members increased, adding that the boardalways has had robust debates with the three members.

“I don't necessarily think adding two voices does anything toimprove that debate,” she said.

On the other hand, CUNA officials believe that there must becontinuity on the board, as terms expire and members take otherjobs, said Ryan Donovan, CUNA's chief advocacy officer. Thatcontinuity would be enhanced if the board were expanded to fivemembers, he said.

Donovan said, however, that the number of members on the NCUAboard is a much lower priority than changes at the CFPB.

“We think a commission is common sense,” Donovan said, indiscussing the powers that a single director has. “This isn'trocket science.”

NAFCU also supports a commission, Hunt said, adding that NCUAalways has been an effective regulator of credit unions. She saidthat NAFCU questions the need for the CFPB to have any regulatorypower over credit unions.

Donovan said that Hensarling must be cognizant of what he canget through his committee, and then through the House and Senate,adding that the chairman's proposal is simply an opening move in alarger debate.

He said most members of Congress believe that some change isneeded at the CFPB and cited a letter signed by the clear majorityof House members and senators last year pushing the agency tobetter tailor its rule-making to consider the size of the financialinstitution.