Senate passes resolution of disapproval for CFPB’s 1071 rule
The Senate passed a joint resolution of disapproval Wednesday on the Consumer Financial Protection Bureau’s section 1071 rule. CUNA wrote in support of the resolution, which would void the rule through the Congressional Review Act.
The 1071 rule—finalized in March—would require credit unions to collect and report certain data on applications for credit.
“We thank the Senate for supporting our concerns that section 1071’s complexity and costs will ultimately lead to less favorable outcomes and higher costs for small business borrowers. Credit unions will bear a disproportionate burden under the final rule, which is why we support the joint resolutions against it,” said CUNA President/CEO Jim Nussle. “Credit unions support the intent of section 1071, but believe the rule as finalized would place too man barriers between small businesses and community financial institutions like credit unions.”
CUNA has called for the section 1071 rule to be “appropriately tailored” to ensure credit unions can meet member business needs, and noted the rule’s implementation schedule is “aggressive, even for the largest, most technology savvy commercial lenders.”
The House Financial Services Committee passed a similar resolution of disapproval earlier this year, but must re-vote on it to ensure consistency with the Senate-passed resolution.
CUNA, Cornerstone League, and Rally Credit Union have also filed a motion to intervene to stay implementation of the rule for all covered entities. A previous court decision provided the stay only to members of a banking association that filed the initial challenge.