Three California congressmen and a representative from Ohio are pressing the CFPB to exempt credit unions from rules.

NAFCU on Tuesday announced Reps. Adam Schiff (D-Calif.) and Steve Stivers (R-Ohio) were gathering signatures for a letter urging CFPB Director Richard Cordray to use the bureau's Dodd-Frank Act authority to exempt credit unions from certain rulemakings.

The bipartisan letter noted that a Government Accountability Office report recently found that financial services have been limited or discontinued by many community-based financial institutions due to new regulations, particularly those governing remittance transfers.

Reps. Pete Aguilar (D-Calif.) and Ed Royce (R-Calif.) also agreed to sign the letter, NAFCU said in a release. Stivers and Royce are members of the House Financial Services Committee.

“We appreciate Representatives Schiff's and Stivers' leadership in championing this matter and thank Representatives Aguilar and Royce for their important support for alleviating credit unions' overwhelming regulatory burden,” said NAFCU PresidentCEO Dan Berger.

The letter also praised credit unions and community banks for their focus on local lending and community development. The signers will urge Cordray to use CFPB's authority under Section 1022(b)(3)(a) in the Dodd-Frank Act to adapt regulations by allowing it to exempt any class of entity from its rulemakings.

Instant Insights /

CFPB Credit Union Exemption Penned in Congress

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