House panel presses CFPB’s Cordray on regulations

CFPB Director Richard Cordray was challenged during a House Financial Services Committee hearing Wednesday for stating that the bureau cannot exempt credit unions from all its rules.

In an exchange with Rep. Andy Barr, Cordray said the CFPB cannot exempt credit unions from all rules. Barr disputed that.

In particular, Barr noted the negative impact of the bureau’s remittance rule on credit unions on military bases, and he noted that NAFCU member Fort Knox Federal Credit Union, of Kentucky, has had to stop offering remittance products because of the compliance burden. “Why won’t you provide relief to servicemembers and their families?” Barr asked. Cordray contended that Congress required the rule and that the CFPB cannot exempt credit unions from it.

Barr disagreed and said, “The bureau has the discretion to provide the relief to these credit unions” from the current rule.

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