Consumer Financial Protection Bureau chief Richard Cordray told credit unions Monday they do not share in the blame for the excessive practices that caused the housing meltdown. In fact, he praised credit unions that have put mortgage schools together to aid borrowers.
Cordray made those assertions while speaking at the Credit Union National Association's Governmental Affairs Conference in Washington D.C.
Still, the CFPB director acknowledged banking regulations like Dodd-Frank will have some impact on all sectors of the financial services economy.
To keep the playing field fair for all lenders, the CFPB director encouraged credit unions to keep the regulator advised of any practices they see in the marketplace that are in violation of the law.
"One of our core beliefs at the Consumer Financial Protection Bureau is that honest businesses will benefit when those that cheat their customers are held accountable," Cordray said. "We want all financial institutions, all of your competitors, to have the same kind of accountability that credit unions face every day. You make the costs and risks clear to your customers up front. Maybe they already know about them from attending your mortgage school."
-- Kerri Panchuk