The Credit Union National Association (CUNA) has offered revisions regarding the Federal Housing Finance Agency’s approach to fair lending oversight and unfair or deceptive acts or practices (UDAP) compliance.
According to the CUNA, credit unions have expressed concerns over proposed UDAP enforcement over regulated entities to the extent it could create more indirect oversight of credit unions.
“Credit unions are highly regulated institutions and their compliance with UDAP and other consumer protection requirements are subject to the supervision of NCUA (National Credit Union Administration) or the Consumer Financial Protection Bureau (CFPB),” the CUNA wrote in correspondence to FHFA Director Sandra L. Thompson regarding the agency’s Fair Lending, Fair Housing, and Equitable Housing Finance Plans. “Supervision and enforcement over the Regulated Entities that could create additional burdens on credit unions and other lenders seeking access to the secondary market or the Regulated Entities’ products and services would be redundant, given NCUA or CFPB oversight and make it more difficult for credit unions to access the secondary market or take advantage of the Regulated Entities’ product offerings.”
Within its letter to Thompson, the CUNA urges the FHFA to finalize the fair lending and fair housing oversight regulation without codifying the UDAP compliance requirements.
“If FHFA, however, determines to move forward with codifying those UDAP compliance requirements, then it should provide guidance to the Regulated Entities specifying the types of conduct that might be implicated by the prohibition against UDAPs described in section 1293.11(b).”