CFPB outlines plan for small biz data collection rule
The CFPB is seeking summary judgment in a lawsuit brought against it for allegedly violating the Administrative Procedures Act (APA). The California Reinvestment Coalition, National Association for Latino Community Asset Builders, and two individual small business owners claim the bureau has violated the law by not issuing regulations to implement Section 1071 of the Dodd-Frank Act, which is related to small business lending data collection.
In its motion for summary judgment to the U.S. District Court for the Northern District of California, the bureau argues that it has not violated the APA as Congress did not stipulate a timeline for this rulemaking. In addition, the bureau cites its recent symposium on the issue as proof that it "has made considerable progress in undertaking the information-gathering necessary to support an informed rulemaking."
The bureau also outlines its rulemaking plan for Section 1071:
- In the next six months, the bureau plans to complete its recommendation and briefing to Director Kathy Kraninger.
- Next, the bureau will begin the Small Business Regulatory Enforcement Fairness Act (SBREFA) process to determine the rule's impact on small businesses, as well as seek Office of Management and Budget approval to conduct a survey of estimated one-time costs to lenders responsible for reporting data under the rule.
- By next November, the bureau plans to release the SBREFA outline and the SBREFA panel would issue its report within two months of being convened.
- As the bureau cannot predict how many comments it will receive in response to the SBREFA outline, it cannot estimate a target date for the issuance of a proposed rule on Section 1071.
The bureau first issued a request for information in May 2017. Its 2019 spring rulemaking agenda has "pre-rule activity" happening in early 2020.
NAFCU has previously urged the bureau to exempt credit unions from rulemakings related to data collection and reporting on small business lending as the industry is subject to strict limits on member business lending and field of membership rules. Due to these restrictions, reported data may not achieve the statutory purpose.
The association will keep credit unions informed as this lawsuit and rulemaking proceed.
Add to Calendar 2021-07-13 14:00:00 2021-07-13 14:00:00 Fair Lending - What Your Board Needs to Know The new administration has made it crystal clear that fair lending compliance is at the top of its financial services agenda, and non-compliance is not an option. It’s time to dust off that fair lending program and make sure your preventive and detective controls are fully functioning as designed. This webinar will help you understand what is going on in fair lending compliance at credit unions, so that you can make sure your board is up to speed on key regulatory risks and paying attention to key fair lending risk indicators. Topics include, fair lending risk management, understanding fair lending risk in underwriting and pricing, and key considerations when reporting fair lending findings. Key Takeaways Identify and analyze potential fair lending risks in a practical manner. Understand recent fair lending enforcement case studies. Craft a strong message to the board on managing fair lending risk. Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD) One registration gives your entire credit union access to the on-demand recording until July 13, 2022.Already registered? Go to the Online Training Center to view live. Who Should Attend? Chief Executive Officers NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Risk titles Compliance titles Legal staff Education Credits NCRMs will receive 1.0 CEUs for participating in this webinar. NCCOs will receive 1.0 CEUs for participating in this webinar. CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Identify and analyze potential fair lending risks in a practical manner. Understand recent fair lending enforcement case studies. Craft a strong message to the board on managing fair lending risk. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Regulatory Ethics – Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU email@example.com America/New_York public
Credits: NCCO, NCRM, CPE
Get daily updates.
Subscribe to NAFCU today.