CUNA, NAFCU urge House to pass resolution to block 1071 rule
CUNA President and CEO Jim Nussle and NAFCU President and CEO Dan Berger wrote to House leadership Wednesday, urging the chamber to pass a joint resolution disapproving of the CFPB’s section 1071 rulemaking related to small business lending data collection.
“It is important for the CFPB to not harm small businesses or small financial institutions, such as community credit unions,” wrote Nussle and Berger. “There is widespread concern that the complexity and significant costs of the CFPB’s Section 1071 rule will weigh disproportionately on credit unions in ways that ultimately lead to fewer and less favorable outcomes for all small business borrowers.
“The overly broad scope of the CFPB’s rule will substantially raise the cost of small business borrowing and require covered financial institutions to collect data on businesses that are not ‘small businesses’ by any traditional metric. Rulemaking from Section 1071 should be appropriately tailored to ensure the health and financial needs of truly small businesses can continue to be met,” they added.
The Senate in October passed the Congressional Review Act (CRA) resolution to block the rule’s implementation. The House is set to consider the resolution Friday; it would then head to President Joe Biden should it pass.
Currently, the rule is suspended until the Supreme Court rules on the constitutionality of the bureau’s funding structure. CUNA and NAFCU will continue to engage the bureau and lawmakers on the issue to obtain regulatory relief for credit unions.
Get daily updates.
Subscribe to NAFCU today.