McWatters to CFPB: Provide Reg Relief to CUs

In a May 24th letter to Consumer Financial Protection Bureau (CFPB) Director Cordray, Acting National Credit Union Administration (NCUA) Chairman McWatters requested that the CFPB provide regulatory relief to credit unions.

Specifically, McWatters asked that the CFPB alleviate the compliance burden for credit unions with respect to the Home Mortgage Disclosure Act and Unfair, Deceptive, or Abusive Acts or Practices requirements of the Dodd-Frank Act.

McWatters noted that Section 1022(b)(3)(A) of the Dodd-Frank Act permits the CFPB to "exempt any class of persons, service providers, or consumer financial services from certain regulations." However, this section of the Dodd-Frank Act has been underutilized by the CFPB.

McWatters points out that the unique structure and small size of many credit unions warrants this regulatory relief. The median size for credit unions is less than $30 million in assets and the median staff size is a mere 8 employees.

The letter is below.