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Senate Republicans call for delay of CFPB’s 1071 rule
Eight Republican senators wrote to the CFPB Friday urging the bureau for a “nationwide stay of the effective date of its Section 1071 rule” after a U.S. District Court in Texas provided relief only to specific institutions. NAFCU has consistently raised concerns about the rule’s negative impact on credit unions’ small business lending and continues to advocate for relief.
The senators, all members of the Senate Banking Committee, noted that smaller institutions, such as credit unions, are forced to “work towards implementation of the burdensome and needlessly complex rule.” Additionally, the senators called attention to the disparity created by the CFPB, adding that it raises concerns about the bureau’s “willingness to apply common sense approaches to the thousands of small businesses and lenders that serve Main Street.”
In late August, NAFCU and other financial trades called on the CFPB to “address the current disparity that exists for financial institutions working to implement” its section 1071 rule. The trades urged the CFPB to establish new effective dates for all institutions “to preserve equity for covered financial institutions.” The trades also pointed out the disparate impact this rule will have on small institutions.
NAFCU will continue to engage the CFPB to minimize undue regulatory burden and ensure a level playing field.