Compliance Blog

Written by Steve Van Beek

I hope everyone had a great holiday weekend and the chance to spend time with family and friends while remembering those who made the ultimate sacrifice for our country.  

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Unfortunately, the summer regulatory season is about to heat up.  The pace and scope of potential new regulations is frightening.  Another variable coming into play is the July 21, 2011 transfer of powers to the Consumer Financial Protection Bureau (CFPB).  

Comment Letters.  One of the greatest tools that credit unions have is the ability to comment on proposed regulations.  Regulatory agencies must follow "notice and comment" rulemaking for the majority of their new requirements (as opposed to guidance documents which can simply be released by the agencies as they do not carry the force of law).

NCUA Chairman Matz recently released a press release and video on the importance of credit union comment letters.  Chairman Matz also gave advice on how to write an effective comment letter.

Now, you may be thinking:  We cannot even keep up with the existing final regulations, how can we keep track of proposals and find the time to write comment letters?

Valid point.  This is an understandable concern for most credit unions - especially small credit unions.  However, I would argue that input during the rulemaking process can help ease the compliance burden of final regulations.  Before a rule is finalized is the best time for credit unions to ask for clarifications and ask the regulatory agencies to elaborate on their expectations.  

NAFCU Members:  Our Regulatory Affaris team releases Regulatory Alerts on proposed regulations and you can submit your comments directly to NAFCU in addition to (or in lieu of) sending your comments directly to the agency. 

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We will have more on comment letters in the future as their role will be crucial in communications with the CFPB which will have broad powers to regulate numerous industries - including credit unions - at the same time.