Newsroom
NAFCU writes to CFPB on section 1071 rule delay
NAFCU and CUNA wrote to the CFPB Monday calling on the bureau to delay the small business lending data reporting rule for credit unions. The rule implements section 1071 of the Dodd-Frank Act and would require banks to collect data on small businesses that apply for loans.
Last week, a federal court in Texas delayed implementation of the rule for members of the banking trade groups that sued until the Supreme Court rules on the bureau’s funding structure. Following that ruling, the groups wrote to the CFPB asking to delay the rule for all FDIC-insured institutions. Additionally, the Independent Community Bankers of America and other trades filed an unopposed motion to intervene in the case.
In the letter, NAFCU and CUNA urged the CFPB to also delay implementation of the rule for all covered financial institutions subject to the rule’s requirements.
“Given the effect of the Order on the overall distribution of compliance burdens across the financial sector, we ask that you consider broader relief,” wrote NAFCU and CUNA. “Specifically, we ask that you take action to provide the same injunctive relief to all covered financial institutions as afforded to the plaintiffs in the Order."
NAFCU has consistently expressed opposition to the rule, as it would likely hinder credit unions’ small business lending. The rule is set to go into effect Aug. 29, and the Supreme Court is set to hear oral arguments on the bureau’s funding structure Oct. 3. Stay tuned to NAFCU Today for the latest out of Washington.