The Trump administration’s consideration of J. Mark McWatters to lead the Consumer Financial Protection Bureau is stoking fears among bankers that he will show favor to credit unions once in office.
In his current position as chair of the National Credit Union Administration, McWatters has publicly advocated for cutting back the CFPB’s oversight of the credit union industry and supported separate measures that would allow such institutions to expand their lending footprint.
“The NCUA has developed a reputation for being a cheerleader for its industry,” said Camden Fine, president and CEO of the Independent Community Bankers of America.
Banking regulators, on the other hand, “have traditionally and still are basically impartial regulators of their industry,” he said.
McWatters’ public record is a concern for bankers, particularly his lobbying for breaks for credit unions from the CFPB.
In a July letter to then-CFPB Director Richard Cordray, McWatters said credit unions with assets of more than $10 billion should be exempt from the bureau’s oversight.
Read more in American Banker.