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NAFCU member Mike Wilson will testify today on the association’s behalf – the only credit union trade representative on the witness panel – as the House Small Business Subcommittee on Economic Growth, Tax, and Capital Access explores how the CFPB’s section 1071 rulemaking, related to small business lending data collection, will impact financial institutions and the small businesses they serve.

Wilson, chief experience officer of Members 1st Federal Credit Union (Enola, Pa.), oversees the credit union’s exceptional member experience and leads the business development and wealth management teams to cultivate new relationships and foster current ones to support the institution and members’ success.

During his testimony, Wilson will highlight Members 1st’s business lending program and how the CFPB’s proposed section 1071 rulemaking will negatively impact small business lending, including by adding compliance burdens, costs, and friction to small business relationships.

The bureau’s proposed rule to implement section 1071 would require credit unions and credit union service organizations (CUSOs) that originated at least 25 covered small business credit transactions in each of the two preceding calendar years to collect and report small business credit application data, including data related to the ethnicity, race, and sex of small business applicants’ principal owners.

The CFPB’s fall rulemaking agenda, released earlier this year, indicated the bureau would issue the final section 1071 rule in March, as required by a settlement overseen by the U.S. District Court for the Northern District of California in a lawsuit brought against the bureau.

Today’s hearing is set for 10 a.m. Eastern. Other witnesses include representatives from JBT Bank, The Fountain Trust Company, and Accion Opportunity Fund. Stay tuned to NAFCU Today for insights from the hearing, and for updates on the CFPB’s rulemaking process.