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NAFCU, noting the uniqueness of credit unions and their limited authority for member business lending, urged ahead of a CFPB public field hearing today that the CFPB exempt the industry from any future rulemaking that would require further disclosure of business loan information.

Today's hearing, slated for 11 a.m. Pacific (2 p.m. Eastern) in Los Angeles, will review a Dodd-Frank Act small business lending requirement that the CFPB collect information on small business loans made to women- and minority-owned business.

NAFCU will monitor the hearing for any potential impact on the credit union industry.

"Credit unions serve distinct fields of membership, and as a result, institution-level data related to women-owned, minority-owned, and small business lending substantially differs in relation to other lenders," wrote NAFCU Regulatory Affairs Counsel Andrew Morris in a letter to the bureau on Tuesday. "Given the unique characteristics of credit unions and the limits placed on member business loans (MBLs), the CFPB should seek to exempt credit unions from any future rulemaking that compels disclosure of business loan information."

Morris explained the association's concerns regarding the possibility of increased compliance costs and further restricted lending activities for credit unions that might result from this Dodd-Frank Act requirement. Implementation of Section 1071 of the Dodd-Frank Act would require financial institutions to collect and send small business loan information to the CFPB using procedures similar to those used for reporting information under Home Mortgage Disclosure Act rules.

Morris noted that because credit unions' member business lending is limited to the lesser of either 1.75 times their net worth or 12.25 percent of total assets, "business loan data may appear skewed relative to other institutions." He wrote that comparing information collected from credit unions with small business loan data from banks and other institutions "would be misleading and unhelpful in achieving the statutory purpose of Section 1071."

Today's hearing will include remarks by CFPB Director Richard Cordray, followed by a panel discussion of consumer advocates and industry representatives and testimony from members of the public.

NAFCU staff will meet with CFPB staff to discuss small business lending issues on May 30. NAFCU has previously expressed concerns about the regulatory burden on credit unions relating to small business lending issues.