In the letter, Thaler says NAFCU believes tomorrow’s mark-up is an important one, as many of the bills highlight the need for credit unions to have a clear understanding of how the CFPB operates. He also says a number of the legislative proposals being considered will provide improvements to the CFPB and some relief to those who are subject to the new regulatory burdens from the Bureau.

If you would like more information on this matter or would like to speak about this with Brad Thaler, please let me know.

Thank you.

Dana Kauffman
Communications Coordinator
National Association of Federal Credit Unions
3138 10th Street North
Arlington, VA 22201
Phone: 703-842-2235
Fax: 703-524-1082
dkauffman@nafcu.org

June 9, 2014

The Honorable Jeb Hensarling                                    The Honorable Maxine Waters

Chairman                                                                     Ranking Member

House Financial Services Committee                           House Financial Services Committee

United States House of Representatives                      United States House of Representatives

Washington, D.C. 20515                                              Washington, D.C. 20515

Re:      Committee Consideration of Legislation to Promote Transparency and

           Accountability at the Consumer Financial Protection Bureau

Dear Chairman Hensarling and Ranking Member Waters:

On behalf of the National Association of Federal Credit Unions (NAFCU), the only trade association exclusively representing the interests of our nation’s federal credit unions, I write today in advance of tomorrow’s full committee mark-up of several bills that would bring more transparency and accountability to the Consumer Financial Protection Bureau (CFPB) and other entities created under the Dodd-Frank Act, including the Financial Stability Oversight Council (FSOC).

As you know, Members of Congress on both sides of the aisle have acknowledged that credit unions were not the cause of the financial crisis. While NAFCU has long recognized the need for additional consumer protection in the financial services arena, we were the first credit union trade association to oppose CFPB authority over credit unions given their record of member service and the existing laws and regulations they are subject to. While NAFCU maintains that the CFPB should not have authority over credit unions, it has become clear through the rule writing and examination processes that credit unions are firmly within reach of the new regulatory body. Accordingly, NAFCU member credit unions and their 98 million member owners have a vested interest in ensuring the CFPB operates in a fair and transparent way.

NAFCU believes today’s mark-up is an important one, as many of the bills highlight the need for credit unions to have a clear understanding of how the CFPB operates. A number of the legislative proposals being considered will provide improvements to the CFPB and some relief to those who are subject to the new regulatory burdens from the Bureau. We look forward to the committee’s debate of these measures.

In particular, NAFCU is glad to see the consideration of Representative Duffy’s legislation, the Bureau Advisory Commission Transparency Act (H.R. 4262), that would ensure CFPB Credit Union Advisory Council meetings (and others) are open to the public and all minutes and reports are made available as detailed under the Federal Advisory Committee Act. We are pleased that, just last month, the CFPB announced that the Bureau was taking steps to accomplish this goal. NAFCU believes the Credit Union Advisory Council plays an important role in providing information to the CFPB on how various rules and regulations would impact credit unions in practice, and also encourages the CFPB to take these discussions into account throughout the rule making process.

In the same vein, NAFCU also supports Chairman Garrett’s bill, the Financial Stability Oversight Council Transparency and Accountability Act (H.R. 4387), that would require the same level of openness and transparency from the FSOC. Given the FSOC’s statutory requirement to facilitate regulatory coordination, NAFCU member credit unions would like as much information as possible with respect to the council’s activities.

NAFCU also supports Representative Fitzpatrick’s legislation, the Bureau Research Transparency Act (H.R. 4539), that would ensure CFPB research papers are made available to the public and include all data and analysis that contributed to the final product. Given the pace at which the CFPB must work to meet statutory requirements outlined in the Dodd-Frank Act, publication of materials used to support various activities seems like an issue of fairness that may help credit unions better understand the logic behind these initiatives.

We are also pleased to see consideration of, and would urge support for, Representative Posey’s legislation, the Bureau Advisory Opinion Act (H.R. 4662). This bill would help establish procedures for institutions to get needed advisory opinions from the Bureau, something other regulators have long done and has been lacking from the CFPB.

Lastly, NAFCU recognizes and supports concepts found in Representative Mulvaney’s legislation, the Bureau Examination Fairness Act (H.R. 4804), including reasonable time limitations on the completion of examination field work and the issuance of exam reports and supervisory letters by the CFPB.  As you know, NAFCU has commented extensively before the committee on broader exam fairness legislation introduced by Chairman Capito and Representative Maloney (H.R. 1553, the Financial Institutions Examination Fairness and Reform Act) that would bring a higher level of accountability to all federal financial regulators and their field examiners, covering the CFPB and the prudential credit union regulator the National Credit Union Administration. NAFCU encourages the committee to closely review both pieces of legislation going forward.

Again, thank you for holding this important mark-up. We look forward to a robust discussion on how the CFPB can operate in a more transparent way. If my colleagues or I can be of assistance to you, or if you have any questions regarding regulatory relief for our nation’s credit unions, please feel free to contact myself, or NAFCU’s Director of Legislative Affairs, Jillian Pevo at (703) 842-2286.

Sincerely,

Brad Thaler

Vice President of Legislative Affairs

cc:       Members of the House Financial Services Committee