The CFPB could extend an exception to its remittance rule, but it won't bring back credit unions thatalready abandoned the international wire transfer business,according to trade associations.

“CUNA is generally supportive of the CFPB's proposal to extendthe temporary exception that permits certain estimated disclosuresunder the agency's international remittance transfer rule,” saidMary Dunn, senior vice president and deputy generalcounsel.

“Credit unions offer remittances in a number of cases as anaccommodation for their members, and estimated disclosures can behelpful for open-network transfers that utilize third-partyinstitutions to reach foreign countries. However, we remainvery concerned that credit unions have reduced or eliminatedremittances in light of the rule generally, and this proposal willlikely not affect that result.”

Dunn said CUNA will keep pressing the CFPB to give credit unionsa much higher exemption level under the rule.

Under the Dodd-Frank Wall Street Reform and Consumer ProtectionAct, banks and credit unions are able to estimate third-party feesand exchange rates when providing remittance transfers to theiraccountholders until July 21, 2015.

If finalized, the CFPB's proposal would extend the temporary exception by fiveyears until July 21, 2020.

NAFCU also welcomed the proposed extension but expressed ongoingconcerns about the rule overall, including increased costs andother regulatory burdens for any credit union facilitating morethan 100 remittances annually.

“As it stands, this rule is pushing credit unions out of themarket,” said NAFCU Regulatory Affairs Counsel Angela Meyster.