The Consumer Financial Protection Bureau (CFPB) Wednesday issued a proposal that would require lenders to disclose information about their lending to small businesses. CUNA is currently analyzing the 918-page proposal.
Section 1071 of the Dodd-Frank Act amends the Equal Credit Opportunity Act (ECOA) to require financial institutions collect and report to the CFPB certain data regarding certain business credit applications.
CUNA supports the goals of Section 1071 to ensure fair and equitable financial opportunities, but also has concerns regarding potential for unintended consequences and substantial compliance costs associated with the finalization of an complex, overly-broad data collection.
CUNA wrote to the CFPB in December—the early stages of the rulemaking—outlining credit unions’ longstanding support for fair lending laws and emphasizing the needs for financial institutions and consumer to have a clear understanding of regulations and statutes.