CFPB director says a level playing field is needed in CRA modernization

Consumer Financial Protection Bureau Director Rohit Chopra provided his semi-annual report to the House Financial Services Committee. Highlights:

• When asked whether credit unions should be subject to CRA-like requirements in light of Navy Federal Credit Union’s allegations of fair lending violations, Chopra said the current CRA exemption provides the credit union industry a competitive advantage which needs to be re-examined due to their public subsidy. He supports state-led and federal efforts to apply CRA to state-chartered non-banks and credit unions.

• Lawmakers pushed back against the CFPB’s funding structure and called for the CFPB to be subject to the appropriations process.

• Additionally, lawmakers raised concern about CFPB’s aggressive rulemaking agenda, particularly proposals to limit overdraft and credit card late fees, which would limit access and raise the cost of credit.

• Chopra highlighted trigger leads as one of the top concerns he hears from mortgage lenders and indicated he supports the goals of ICBA-endorsed H.R. 7297/S.3502, the Homebuyers Privacy Protection Act, which would limit mortgage trigger lead solicitations exclusively to customers who provide their consent or lenders that have an existing relationship to the applicant.