WASHINGTON—The credit union trade groups are again calling on the House 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 CUNA President and CEO Jim Nussle and NAFCU President and CEO Dan 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,” the letter continued. “Rulemaking from Section 1071 should be appropriately tailored to ensure the health and financial needs of truly small businesses can continue to be met.”
Awaiting SCOTUS Ruling
The Senate in October passed the Congressional Review Act (CRA) resolution to block the rule’s implementation.
Currently, the rule is suspended until the Supreme Court rules on the constitutionality of the Bureau’s funding structure, NAFCU noted.
Your Best Holiday Shopping Offer is Here!
The biggest, best and freshest news reporting in credit unions remains free! Each morning CUToday.info delivers its daily Fresh Today news update offering the latest headlines and breaking news right to your email, with the easy-to-read headlines format allowing you to click on the stories that interest you most in order to learn more. So stop paying those bank-fee-like subscription prices from other so-called “news” publications!
If you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time—and it’s free!
Please note that after signing up you may need to go to your Spam/Junk folder and mark the morning headlines email as safe. CUToday.info does not provide its list of readers and emails to outside parties, and we will not be contacting you to sell you an extended warranty or sending you any links so you may cash in on an inheritance you didn’t know was coming.
And did we mention it’s free?