LEXINGTON, Ky--A federal court in Kentucky has become the latest to delay enforcement of the CFPB’s small business lending data reporting rule until the Supreme Court rules on the constitutionality of the Bureau’s funding structure.
The Supreme Court is scheduled to hear arguments for the case Oct. 3. Should the court rule against the CFPB and the constitutionality of its funding, it is expected to have wide-ranging reverberations across multiple industries, including real estate.
As CUToday.info has reported, other jurisdictions have issued similar rulings in cases where banks have also been plaintiffs, beginning with Texas.
The plaintiffs in the lawsuit include the Kentucky Bankers Association and some local banks.
‘Unrecoverable Costs’
Of note in the U.S. District Court Eastern District of Kentucky’s decision, the court cited unrecoverable compliance costs, including training programs, seminar fees, staff time, and new software.
The rule implements section 1071 of the Dodd-Frank Act and would require banks to collect data on small businesses that apply for loans.
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