Credit union field hearing witness urges CFPB to reduce reg burden
Boston Firefighters Credit Union CEO Bernie Winne on Wednesday urged the Consumer Financial Protection Bureau to be cognizant of who credit unions are, what their role is, what their role was before the crisis, and the good deeds that they do in their communities as the bureau continues its regulatory work.
Winne was a panelist at the CFPB’s “Know Before You Owe: Mortgages” field hearing in Boston, Mass. The bureau during the hearing released a final rule on the integration of Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) disclosures, and new integrated disclosures. The Credit Union National Association is examining the disclosures and regulations, and is developing a summary. The regulations and disclosures contain some enhancements that were suggested by CUNA and credit unions. (See Nov. 20 News Now story: CU Suggestions In Final CFPB Mortgage Forms.)
The mission of credit unions and the CFPB are very similar, Winne noted during the hearing: Both are consumer oriented. Winne said the concept of simple and honest banking is a hallmark of his credit union, and added that Boston Firefighters CU believes that a knowledgeable member is a good member.
The credit union CEO said the new regulations will help his credit union mortgages look good compared to other options. Deals that Boston Firefighters may have lost in the past due to misinformed consumers should now come their way, he added.
However, Winne said, his credit union is small and is significantly impacted by new regulatory burdens. Boston Firefighters CU has worked closely with underwater homeowners to refinance their mortgages. New regulations could force his credit union to replace some of the simple products it offers with more complex products.continue reading »