BOSTON — Consumer Financial Protection Bureau Director Richard Cordraytold credit unions Thursday during his general session address atNAFCU's Annual Conference that in some respects, they'd be worseoff without the bureau.

“Congress provided that the new requirements of Title XIV ofDodd-Frank would have taken effect on their own terms in theabsence of implementing rules issued by the deadline, which wouldhave been in January 2013, six months ago,” he said.

“And the statutory provisions were much less responsive to thespecial circumstances of smaller creditors, such as credit unions,than our rules have turned out to be. So, in important ways,the Consumer Financial Protection Bureau has been a very positiveforce for credit unions on these issues,” the CFPB directorsaid.

Also at NAFCU Annual Conference:

• 4 Big Things from Confab
• Becker Calls it a Wrap
• Dollar Says Let Golden GooseLive
• Matz Reveals New Risk Rule
• Thursday in Pictures
• Non-Interest Income Balance
• Berger Promises Training Boost
• Beantown Vox Populi
• Wednesday in Pictures
• Non-QMs Offer Opportunity
• Managing Outsourced Collections
• Losing Money at Loan Closings
• New Officers for 2013-2014

In his lunchtime address, the regulator reviewed recent mortgagerules issued by the CFPB and amendments to those rules that exemptsmall lenders. And, as he has done in past credit union industryspeaking engagements, Cordray encouraged the financial cooperativesto make mortgages that don't meet qualified mortgage standards.

“We have tried to ensure that the risk differential betweenthose categories is not substantial, and we have conservativelyestimated that the potential liability cost associated with makingnon-QM loans would add less than one-eighth of a point to theinterest rate,” he said.

“We did this so that credit unions and other responsible lenderscan continue to make traditional relationship loans regardless ofhow they are classified for purposes of the Ability-to-Repayrule.”

Cordray noted that credit unions continue to feel anxious aboutqualified mortgage standards, and offered assistance from the CFPBto discuss and analyze the issues in more detail.

He also announced he will he will participate with NAFCU in oneor more conference calls to discuss non-QM loans and credit unionreluctance to make them.

Cordray repeatedly praised credit unions and their highunderwriting and service standards during his speech, and also toldhis audience that earlier in the day, he had toured the NationalCredit Union Museum in Manchester, N.H.

He said he was impressed by the origins of the credit unionmovement and the closeness of credit unions to underservedAmericans who nonetheless needed comfort security and safety fortheir money.