The House Financial Services Committee advanced a resolution Thursday night to void the Consumer Financial Protection Bureau’s (CFPB) section 1071 rule via the Congressional Review Act. CUNA wrote in support of the resolution at the start of the multi-day committee markup and supports a Senate resolution as well.
“We thank the committee for acting against this rule that has noble intent but would lead to harm and reduced access to credit for small businesses,” said CUNA Deputy Chief Advocacy Officer for Federal Government Affairs Jason Stverak. “Community financial institutions and the businesses they depend on can’t afford the substantial increase in cost in borrowing this rule would create.”
Section 1071 of the Dodd-Frank Act requires financial institutions to collect and report certain data on applications for credit. CUNA has maintained throughout the rulemaking process that the overly broad scope of the rule will require burdensome data collection and raise the cost of small business borrowing.