The letter, signed by a bipartisan group of 330 members of the U.S. House of Representatives, called for the bureau to use its rulemaking exemption authority within the Dodd-Frank Act to protect credit unions and other community-based financial institutions.
Under Section 1022(b)(3)(a) of the Dodd-Frank Act, the bureau could use that authority to provide regulatory relief to both credit unions and community banks by exempting the groups from its rulemaking.
In the letter, Stivers and Schiff wrote, "We urge you to consider the benefits credit unions and community banks provide to their members and ensure that regulations do not have the unintended consequences of limiting services or increasing costs for credit union members or community bank customers."
NAFCU Vice President of Legislative Affairs Brad Thaler said in an interview with CU Times that the trade group has pressed Cordray on this issue before and opposed the CFPB's authority over credit unions during the passage of the Dodd-Frank Act.
"The fact that the majority of the House signed the letter sends a message," he said.
Cordray said during CUNA's Governmental Affairs Conference that while Congress gave the agency some exemption authority, he believes the CFPB cannot exempt credit unions from its rulemaking, as it would go against congressional intent.
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