WASHINGTON—NAFCU has joined with other financial trade groups as well as the U.S. Chamber in a letter that calls on the CFPB to “address the current disparity that exists for financial institutions working to implement” its section 1071 rule.
The rule requires credit unions, and other financial institutions, to report data on applicants for small businesses loans. It is currently the subject of several different court actions, including rulings that have stayed its enforcement for certain financial institutions.
The newest letter, which was sent as a result of what the signatories said has been the Bureau’s “inaction” on delaying the rule for institutions not covered in the recent ruling by a federal court in Texas, addresses compliance challenges with the rule, as different institutions now have different dates to come into compliance.
The organizations are urging the CFPB to establish new effective dates for all institutions “to preserve equity for covered financial institutions.”
“The decision in Texas Bankers Association (case) has upended the implementation schedule by granting many of the largest institutions an injunction,” the trades noted. “Because those institutions are granted additional time, the market for technological solutions and tools to aid in 1071 Rule compliance has been disrupted.”
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