House passes resolution to void section 1071 rule

The House passed a resolution of disapproval for the Consumer Financial Protection Bureau’s section 1071 rule Friday. The Senate passed the resolution in October and it will now head to President Joe Biden’s desk, who is expected to veto it.

The rule—finalized in March—requires credit unions to collect and report certain data on applications for credit for women-owned, minority-owned, and small businesses. 

“We thank Congress for recognizing that, while this rule may be well-intentioned, its real-life impact will harm the small business borrowers and consumers the CFPB aims to protect,” said CUNA President/CEO Jim Nussle. “The overly broad scope of this rule would lead to higher costs for covered financial institutions and small businesses around the country, which is why credit union continue to push back against this rule wherever possible.”

CUNA, Cornerstone League, and Rally Credit Union in Corpus Christi, Texas, successfully challenged the rule in court, resulting in a nationwide stay for all covered entities.

CUNA and NAFCU wrote in support of the resolution prior to the vote this week.