Nominees to lead both the CFPB and Federal Housing Finance Agency (FHFA) shared several priorities that align with America’s Credit Unions’ policy priorities during a Senate Banking Committee hearing Thursday. Jonathan McKernan is nominated to lead the CFPB, and Bill Pulte is nominated to lead the FHFA. 

America’s Credit Unions wrote to the committee in advance of the hearing, outlining priorities for both agencies. For the CFPB, President/CEO Jim Nussle encouraged the bureau to focus on bad actors, address unregulated nonbank lenders, and recognize credit union values. 

Nussle also “strongly recommends that the Bureau avoid unnecessary regulation of credit unions and instead concentrate on addressing genuine threats to consumers and the financial system.”

McKernan, who served on the FDIC board until resigning earlier this month, said the CFPB has “all too often” gotten in the way of its consumer protection mission. 

“It has pushed beyond the limits of its statutory authority. It has seized opportunities to expand its jurisdiction and power. It has offended our basic notions of fairness and due process when it has regulated by enforcement,” he said. “And it has harmed consumers through higher prices and reduced choice when it has failed to strike an appropriate balance between costs and benefits in prescribing new regulations.”

He added that under his watch, “the CFPB will take all steps necessary to implement and enforce the federal consumer financial laws and perform each of its other statutorily assigned functions. But the CFPB will do this by centering its regulation on real risks to consumers and by focusing its enforcement on bad actors.”

America’s Credit Unions focused its FHFA-related comments on ensuring enhanced access to the Federal Home Loan Bank system, as well as improving the system with modernizations and efficiencies. 

“Thoughtful policy adjustments, informed by stakeholder input, can achieve the dual objectives of supporting affordable housing and maintaining a robust and resilient FHLB System,” Nussle wrote. 

Pulte said if confirmed, “my number one mission will be to strengthen and safeguard the housing finance system.”