CUNA staked out a position on the new Consumer Financial Protection Agency somewhere in between the Obama administration and those who don't want any new regulator at all.
The association said the new CFPA should not preempt the NCUA, but its rulings should preempt state rules, and it should be required to streamline and modernize consumer regulation.
CUNA is also pushing lawmakers to finance the agency from federal funds rather than fees levied on specific products, although examination fees should be allowed; to give the agency a structure that allows credit unions to decide what products are appropriate to offer their members; to only require the collection of deposit data by census tract from institutions not required to provide that information to state or federal regulators; and to add another seat on CFPA board for a credit union regulator or industry representative.
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CUNA Vice President for Legislative Affairs Ryan Donovan said the association's position "acknowledges the need for more consumer protection and the desirability of having a centralized rulemaking authority that will streamline regulations."
NAFCU's supports the new agency but wants depository instittuions exempted.
NAFCU Executive Vice President Dan Berger said they have received "very positive response" from some lawmakers and administration officials. Berger said their approach "makes sure credit union member-owners are protected but doesn't add another regulator."
Panels Approve CLF Hike
The House and Senate are set to vote on a bill that includes a $40 billion borrowing authority for the Central Liquidity Facility.
Prior to last year, the CLF had been capped at $1.5 billion since 2001. If Congress approves the House and Senate appropriations committees' recommendation, the CLF borrowing authority would be about $40 billion, based on 12 times the subscribed capital stock and surplus of the CLF.
The measure also includes $1 million for the NCUA's Community Development Revolving Loan Fund and additional money for the Community Development Financial Institutions Fund.
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