WASHINGTON—Members 1st Credit Union’s Michael Wilson will testify today before the House Small Business Subcommittee on the impact of the CFPB's proposed 1071 rule on credit unions and small businesses.
The Pennsylvania-based CU’s chief experience officer will testify on behalf of NAFCU. The hearing begins at 10 ET.
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.
During his testimony, Wilson will reiterate the need for the Bureau to adopt “common sense definitions, right-sized thresholds, and a reasonable, phased mandatory compliance schedule for the rule to protect credit unions and their ability to serve Main Street small businesses,” NAFCU said.
Concerns Expressed
NAFCU’s VP of legislative affairs Brad Thaler noted that trade association already has expressed concerns to the CFPB about the proposed rulemaking adding even more compliance burden to CUs.
Thaler added that NAFCU will also be closely watching Senate Banking Committee and House of Financial Services Committee hearings this week on what happened with the recent bank failures.
And while lengthy testimony is expected from officials at the Federal Reserve, Treasury and FDIC, Thaler said he is uncertain what the outcome will eventually be.
A Lot of Discussion
“We expect a lot of discussion to occur at those hearings,” said Thaler. “But it is still unclear if there's going to be consensus on any legislative path forward, at this time. They may continue to do more hearings.”