Some 70 senators signed a letter to CFPB Director Richard Cordray asking him to take into account the regulatory burdens on credit unions and community banks – and possibly exempt them from some rules.
“The CFPB must also consider its impact on community-based depository lenders, who are essential to spurring economic growth and prosperity at a local level, and not disrupt the good work of community lenders to help someone start a business, buy a home or car, or put their kids through college,” the group of senators, led by Sens. Joe Donnelly (D-Ind.) and Ben Sasse (R-Neb.), wrote.
The letter was similar to one sent to Cordray by 329 House members earlier this year.
The Senate signers included Sen. Tim Kaine (D-Va.), who is considered to be one of the leading contenders to serve as the Democrats' vice presidential candidate.
Credit unions and community banks have argued they did not cause the financial meltdown and should therefore not be subjected to the same regulatory regime as large banks.
The senators urged Cordray to carefully tailor the CFPB's rulemaking.
“We must ensure that credit unions and community banks are not unduly burdened by compliance, but rather have the ability to maintain their close relationships and continue to offer a wide variety of consumer financial products and services,” the senators said.
CUNA took credit for rallying the senators and praised the letter.
“This bipartisan support, in a time when there are few compromises, is proof that CUNA and the leagues are stronger together in getting our messages heard and acted upon by Congress,” CUNA President/CEO Jim Nussle said.
NAFCU Vice President of Legislative Affairs Brad Thaler said the members of Congress have delivered a clear message to the CFPB.
“Given that 329 House members sent Director Cordray a similar letter earlier this year, it is clear that Congress intends for [the] CFPB to use its Dodd-Frank Act exemption authority to better tailor its rules to credit unions,” he said.
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