CFPB CU Group Stressed Role of Panel Days Before It Was Disbanded
Two group leaders say that their views of policymaking are more in line with Mulvaney, who fired them, than with Cordray.
Just days before they were informed they were fired from the CFPB’s Credit Union Advisory Council, the group’s two leaders urged the agency to maintain the panel, emphasizing its importance in providing the bureau with a unique perspective.
“The CUAC bridges the gap between the Bureau’s strong policy knowledge and the practical realities and experience and philosophical differences as compared to other players in the financial services industry,” Katherine Proefke, the panel’s chairman and Gregory Higgins, the group’s vice-chairman, said in a letter.
The CFPB announced Wednesday it is disbanding three panels—the credit union panel, a citizens advisory group and a community bank committee.
Proefke is assistant vice president of compliance at Chevron Federal Credit Union in Oakland, Calif., while Higgins is senior vice president and general counsel at Wings Financial Credit Union in Saint Paul, Minn.
When Acting Director Mick Mulvaney announced the decision to disband the groups, the agency said it would reorganize the committees
The fired members of the three boards were appointed by former Director Cordray, an advocate of strict regulation. President Trump appointed Mulvaney as acting director.
Mulvaney has been implementing changes at the agency and has been soliciting comments about its operations. Comments on the advisory groups and other “external engagements” were due on May 29.
Members of the credit union advisory group did not respond to requests for comment following the disbanding of the group.
Ironically, the two group leaders say that their views of policymaking are more in line with Mulvaney, who fired them, than with Cordray, who appointed them
“The CUAC can provide market information so that the Bureau can understand the implications of its rulemaking efforts,” they added.
And they went on to cite examples of agency actions in which the credit union group provided specific advice. Those issues ranged from qualified mortgages to payday loans.
Credit union trade groups also emphasized the importance of the advisory council.
“This council is a valuable asset and should be preserved as it has been critical in educating the agency on the credit union difference, the unique not-for-profit structure and overall mission of credit unions,” said Ryan Donovan, CUNA’s chief advocacy officer after Mulvaney’s decision was announced Wednesday.
“The CUAC serves an important and constructive purpose, and one of the biggest frustrations our members had while serving on the CUAC under previous CFPB leadership was that their recommendations rarely were put into practice,” said Carrie Hunt, NAFCU’s executive vice president of government affairs and general counsel. “We are hopeful that the bureau’s new approach to public outreach, including town halls and other forums, will allow for even more direct feedback from the credit union industry.”
Much of the attention around the group’s disbanding has focused on the firing of the members of the agency Consumer Advisory Board who have been particularly vocal in their opposition to Mulvaney’s moves at the CFPB.
House Financial Services Committee ranking Democrat Maxine Waters of California blasted that decision.
“The abrupt cancellation of the Consumer Advisory Board’s meetings was an indication of his contempt for this board, which the Consumer Bureau is required to meet with by law,” she said, adding, “Firing the current members of the Consumer Advisory Board is one more signal that under Mulvaney, consumers come last.”