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Federal court halts CFPB small business lending rule for some
Monday, a federal court in Texas delayed implementation of the CFPB’s small business lending data reporting rule for the bankers’ associations that filed a lawsuit challenging the 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.
The U.S. District Court for the Southern District of Texas agreed to suspend the implementation of the rule for members of the banking trade groups that sued but denied the groups’ request to block the rule entirely. The effective date of the rule is Aug. 29.
The rule implements section 1071 of the Dodd-Frank Act and would require banks to collect data on small businesses that apply for loans. NAFCU consistently expressed opposition to the rule, noting its requirements would likely stifle credit unions’ small business lending. The association is supportive of legislative efforts to undo the rule.
Stay tuned to NAFCU Today for the latest out of Washington.