Newsroom
Senate votes to block CFPB small biz data rule
The Senate Wednesday passed a Congressional Review Act (CRA) resolution with bipartisan support aimed at blocking an overreaching CFPB rule related to small business lending data collection under section 1071 of the Dodd-Frank Act.
Several concerns about the rule have been raised as it would require lenders to collect demographic data including whether they are owned by women, people of color, or members of the LGBTQ community. It’s aimed at boosting enforcement of fair lending laws and identifying small business funding gaps and opportunities from small businesses when applying for credit.
NAFCU Vice President of Legislative Affairs Brad Thaler previously offered support for the resolution, stating the bureau’s rulemaking would put significant costs on credit unions which would “result in less availability of credit for small businesses.” The resolution will move to the House for consideration, which will likely be delayed until a Speaker of the House is elected. The White House has indicated President Biden would veto the resolution should it reach his desk.
NAFCU strongly advocated against the CFPB’s section 1071 rulemaking as its requirements would likely stifle credit unions’ small business lending. NAFCU will continue to engage the bureau and lawmakers on the issue to obtain regulatory relief for credit unions.