WASHINGTON, DC (May 10, 2017) — NAFCU Regulatory Affairs Counsel wrote to the Consumer Financial Protection Beureau (CFPB) urging the bureau to exempt the credit union industry from any future rulemaking that would require further disclosure of business loan information.
“Credit unions serve distinct fields of membership, and as a result, institution-level data related to women-owned, minority-owned, and small business lending substantially differs in relation to other lenders,” wrote Morris. “Given the unique characteristics of credit unions and the limits placed on member business loans (MBLs), the CFPB should seek to exempt credit unions from any future rulemaking that compels disclosure of business loan information.”
Morris explained the association’s concerns regarding the possibility of increased compliance costs and further restricted lending activities for credit unions that might result from this Dodd-Frank Act requirement. Section 1071 of the Dodd-Frank Act would require financial institutions to collect and report information – whether the business is a small business and women- or minority-owned – and give this information to the CFPB using systems similar to those used to collection information for the Home Mortgage Disclosure Act rule.
Tomorrow’s hearing will include remarks by CFPB Director Richard Cordray, followed by a panel discussion of consumer advocates and industry representatives and testimony from members of the public.
NAFCU staff will meet with CFPB staff to discuss small business lending issues on May 30. NAFCU has previously expressed concerns about the regulatory burden on credit unions relating to small business lending issues.
The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation’s federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go to www.nafcu.org or @NAFCU on Twitter.
