WASHINGTON - To Director Richard Cordray, the CFPB represents a benevolent agency that has the best interestsof credit unions at heart.

|

To Rep. Andy Barr (R-Ky.), the CFPB is filled with overzealous regulators intent on stifling choice andcompetition.

|

Those vastly differing views of the CFPB were presented onTuesday to attendees of CUNA’s Governmental Affairs Conference.

|

Speaking first, Cordray said he knows credit unions were not theculprits in the recent financial crisis.

|

As a result, credit union officials have argued that they shouldbe exempt from CFPB oversight. Cordray said while Congress gave theagency some exemption authority, a blanket exemption for creditunions would fly in the face of congressional intent.

|

Cordray said skeptics had predicted the CFPB’s QualifiedMortgage rule would decrease the number of mortgages approved. Theopposite has been the case, he said, adding that credit unionsoriginated 39% more mortgage loans during the first nine months of2015 than in the same period of 2014.

|

Cordray also said the board has been responsive to credit unionobjections over some agency rules. For instance, he said, the boardbroadened the definition of rural areas in deciding where financialinstitutions fit. He said Congress wanted the definition evenbroader and passed legislation last year to include even morecredit unions in that definition.

|

The debacle over the definition of rural represents much of whatis wrong with the CFPB, Barr said during his speech. He said one ofthe most rural counties in Kentucky would not have been classifiedas rural under the agency’s original defitions.

|

“This bureau is everything that’s wrong with the Dodd-Frank Actand it should be a primary target,” Barr, a member of the HouseFinancial Services Committee, said.

|

He also took aim at the CFPB’s budget, saying that while theagency is funded by an allocation from the Federal Reserve,officials at that agency are not aware how the CFPB spends itsmoney.

|

“We don’t have control over this agency,” Barr said.

|

Barr leveled similar criticism at the NCUA, saying that theagency increased its spending in eight consecutive fiscalyears.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.