CUNA and several credit unions met this week with representatives from Consumer Financial Protection Bureau (CFPB) to discuss the recently released Request for Information (RFI) regarding the small business lending market. This RFI is the pre-rule stage for implementing a section of Dodd-Frank that amends the Equal Credit Opportunity Act requiring financial institutions to compile and submit information concerning credit applications made by women-owned, minority-owned and small businesses.
CUNA has long expressed concerns over this rulemaking, concerns that it would negatively impact a credit union’s ability to operate in this space.
The credit unions present at the meeting discussed their operations at length and discussed their various strategies surrounding small businesses and how the rulemaking might impact their members.
CUNA recently requested a 60-day extension to the 45-day comment period in order to properly formulate a response to the RFI. This request was reiterated following the meeting with the CFPB after gaining additional insight into the RFI. CUNA plans to convene a working group from CUNA’s Lending Council comprised of experts in business lending to help shape its comments.
Sharon Lindeman, vice president of regulatory advocacy for the California and Nevada Credit Union Leagues, participated in a field hearing last month on small business lending and urged the bureau to exercise caution as it examines small business lending.
Addition information on the meeting is available on CUNA’s Removing Barriers Blog.