Markets Wired

MOU Underscores NCUA and CFPB Commitment to Consumer Protection

ALEXANDRIA, Va. (Jan. 14, 2021) – The National Credit Union Administration and the Consumer Financial Protection Bureau announced a memorandum of understanding agreement to improve coordination between the agencies related to the consumer protection supervision of credit unions over $10 billion dollars in assets.

“This agreement underscores NCUA’s commitment to consumer protection by facilitating vital information sharing between the agencies for credit unions over $10 billion dollars in assets,” said NCUA Chairman Rodney E. Hood. “Improved coordination with CFPB will produce better outcomes in support of consumers and reduce burden on covered institutions.”

“Today’s MOU is an important step towards improving our existing framework and increasing opportunities for collaboration between our agencies,” said CFPB Director Kathleen L. Kraninger. “By working in a collaborative way, we will engage in more effective processes to protect consumers in the financial marketplace. We look forward to our continued partnership with the NCUA.”

Under this MOU, CFPB and NCUA will pursue opportunities to proactively and efficiently share supervisory information, including drafts of Covered Reports of Examination and final Reports of Examination for credit unions over $10 billion dollars in assets, using secure, two-way electronic means. CFPB and NCUA will jointly collaborate in semi-annual strategy planning sessions to identify and address areas of alignment and coordination in examinations for covered institutions.

The MOU will better facilitate coordinated examinations to reduce redundancy and unnecessary overlap. CFPB and NCUA will also share information on training activities and content. Finally, the MOU will permit both agencies to share information related to supervisory activities and potential enforcement actions.