Credit Unions and Community Banks Want to be Exempt from CFPB Regulations

Credit unions have joined community banks with the common thought that they should not be subject to CFPB regulations.

During a House Financial Services subcommittee hearing in April, Rep. Sean Duffy, R-Wis., asked credit union executives what they wanted most from Congress.

Robert Burron, president of Bayer Heritage Federal Credit Union, answered with "exempt credit unions from CFPB regs."

"We're not trying to undermine safety and soundness," Pamela Stevens, chief executive of Security One Federal Credit Union in Arlington, Texas says. "We're looking for fairness. We would hope the CFPB would use some of their powers to exempt institutions that didn't cause the problems and not use the same brush that many of the larger bank players are being brushed with."

Sen. Elizabeth Warren, D-Mass., defended CFPB Directory Richard Cordray's approach to community banks and credit unions, saying that he "has been providing balance, creating space for credit unions and other small financial institutions to run their businesses and serve their customers without drowning them in regulations."

Despite Warren's defense of Cordray, credit unions and banks still feel pressure from the CFPB.

For the full piece see "Banks Find New Best Friend — Credit Unions — in CFPB Fight" (may require subscription).