The NAFCU Journal July - August 2017 - 56

FROM THE PRESIDENT'S DESK

It's Time for Real Relief From the CFPB
By B. Dan Berger, NAFCU President and CEO

P

art of leadership is getting ahead
of the curve and seeing the
big picture. NAFCU showed
this leadership when it was the
first to see the warning signs for credit
unions in the creation of the Consumer
Financial Protection Bureau (CFPB). The
NAFCU Board of Directors knew that
putting credit unions under the jurisdiction of yet another regulatory agency
was a bad idea, and we were the only
credit union trade association to oppose
the CFPB being granted authority over
credit unions. Unfortunately, the past
several years have more than proved
that the NAFCU Board of Directors
was correct.

Today, it's clear to many more people
that credit unions need real regulatory relief from the CFPB compliance
burden. Thankfully, the CFPB has the
legal authority to exempt credit unions
through Section 1022 of the Dodd-Frank

Act. What we need now is for the bureau
to recognize this necessity and act as
soon as possible.
When the CFPB was created, NAFCU
knew that lumping in the good actors
with the bad would create more problems than it would solve. Credit unions
- as the creators of the CFPB admit
- did not cause the financial crisis.
Credit unions have always been a trustworthy, member-focused alternative
to Wall Street. Forcing member-owned,
not-for-profit credit unions to comply
with the same complex rules created
to address the abuses of Wall Street
and predatory lenders has never made
sense - and it has taken a toll on the
credit union industry.
The negative impact of this increased
compliance burden is clear from the
numbers: Since the second quarter of
2010, we have lost more than 1,660 federally-insured credit unions, accounting for more than 22 percent of the
industry. The overwhelming majority
of these were smaller institutions with
less than $100 million in assets. The
sheer number of complicated CFPB
regulations - from mortgage rules to
payday lending and remittance regulations - is overwhelming.

''

The CFPB can provide immediate relief
to credit unions by using its broad legal
authority under Section 1022 to exempt
credit unions from various rulemakings.
This would make a huge difference not
only for credit union professionals, but
also for their members.
Consumers benefit directly when credit
unions have more freedom and flexibility.
Credit unions' unique member-owned
structure means that members - not
shareholders - will be the first to see
the difference when credit unions get
regulatory relief.
When credit union members benefit,
the economy benefits. More loans mean
more small businesses and more employment. We all know the economy has been
relatively slow to recover in the aftermath
of the crisis; regulatory relief for credit
unions can help strengthen that recovery.
We are pleased that, today, we have
others joining us in our call for credit
union regulatory relief from the CFPB's
mission creep. Now, we just need the
CFPB to hear that call and respond.
Connect with Dan Berger on Twitter
@BDanBerger and on his blog at
bergerleadershipblog.com.

When credit union members benefit,
the economy benefits.

56

''

THE NAFCU JOURNAL  JULY-AUGUST 2017


http://www.twitter.com/bdanberger http://www.bergerleadershipblog.com

Table of Contents for the Digital Edition of The NAFCU Journal July - August 2017

Our First 50 Years
Events Calendar
From the Chair
Inside NAFCU
The Digital Download
How Secure Is Your Credit Union?
The Bank Secrecy Act
2017 Annual NAFCU Award Winners
2016 NAFCU Annual Report
Getting to Know …
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal July - August 2017 - Cover1
The NAFCU Journal July - August 2017 - Cover2
The NAFCU Journal July - August 2017 - 1
The NAFCU Journal July - August 2017 - Our First 50 Years
The NAFCU Journal July - August 2017 - Events Calendar
The NAFCU Journal July - August 2017 - From the Chair
The NAFCU Journal July - August 2017 - 5
The NAFCU Journal July - August 2017 - Inside NAFCU
The NAFCU Journal July - August 2017 - 7
The NAFCU Journal July - August 2017 - 8
The NAFCU Journal July - August 2017 - 9
The NAFCU Journal July - August 2017 - 10
The NAFCU Journal July - August 2017 - 11
The NAFCU Journal July - August 2017 - 12
The NAFCU Journal July - August 2017 - 13
The NAFCU Journal July - August 2017 - The Digital Download
The NAFCU Journal July - August 2017 - 15
The NAFCU Journal July - August 2017 - How Secure Is Your Credit Union?
The NAFCU Journal July - August 2017 - 17
The NAFCU Journal July - August 2017 - 18
The NAFCU Journal July - August 2017 - 19
The NAFCU Journal July - August 2017 - 20
The NAFCU Journal July - August 2017 - 21
The NAFCU Journal July - August 2017 - The Bank Secrecy Act
The NAFCU Journal July - August 2017 - 23
The NAFCU Journal July - August 2017 - 24
The NAFCU Journal July - August 2017 - 25
The NAFCU Journal July - August 2017 - 26
The NAFCU Journal July - August 2017 - 27
The NAFCU Journal July - August 2017 - 28
The NAFCU Journal July - August 2017 - 29
The NAFCU Journal July - August 2017 - 2017 Annual NAFCU Award Winners
The NAFCU Journal July - August 2017 - 31
The NAFCU Journal July - August 2017 - 32
The NAFCU Journal July - August 2017 - 33
The NAFCU Journal July - August 2017 - 34
The NAFCU Journal July - August 2017 - 35
The NAFCU Journal July - August 2017 - 36
The NAFCU Journal July - August 2017 - 2016 NAFCU Annual Report
The NAFCU Journal July - August 2017 - 38
The NAFCU Journal July - August 2017 - 39
The NAFCU Journal July - August 2017 - 40
The NAFCU Journal July - August 2017 - 41
The NAFCU Journal July - August 2017 - 42
The NAFCU Journal July - August 2017 - 43
The NAFCU Journal July - August 2017 - 44
The NAFCU Journal July - August 2017 - 45
The NAFCU Journal July - August 2017 - 46
The NAFCU Journal July - August 2017 - 47
The NAFCU Journal July - August 2017 - Getting to Know …
The NAFCU Journal July - August 2017 - 49
The NAFCU Journal July - August 2017 - Management Insight
The NAFCU Journal July - August 2017 - 51
The NAFCU Journal July - August 2017 - Compliance Central
The NAFCU Journal July - August 2017 - 53
The NAFCU Journal July - August 2017 - Inside NAFCU Services
The NAFCU Journal July - August 2017 - 55
The NAFCU Journal July - August 2017 - From the President’s Desk
The NAFCU Journal July - August 2017 - Cover3
The NAFCU Journal July - August 2017 - Cover4
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