CFPB asks for explicit MLA authority (NAFCU Today, January 18, 2019)
Friday, January 18, 2019
Bureau of Consumer Financial Protection Director Kathy Kraninger has sent draft legislation to Congress that would give the bureau clear authority to supervise institutions for compliance with the Military Lending Act (MLA). The request comes months after the bureau signaled it would stop examining for compliance on the basis that the legislation does not specify such oversight by the bureau.
In letters Thursday to Vice President Mike Pence and House Speaker Nancy Pelosi, D-Calif., Kraninger said that the proposal "would clarify" the bureau's authority to supervise under the MLA. This rule has posed many compliance challenges to credit unions and NAFCU has continued to push for clarity in the form of guidance or revisions.
Whether the bureau's approach to MLA oversight will change in the meantime is not clear. NCUA's 2019 supervisory priorities do include examining for compliance with the MLA, as well as additional resources related to its requirements.
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