Oklahoma Bankers Association We make bankers better!
The CFPB in 2023 released a final rule implementing Section 1071, which requires financial institutions to report data on small-business lending. Critics said the rule was unwieldy and would create numerous compliance headaches, especially for smaller institutions. Several lawsuits followed, including one brought by the Texas Bankers Association and American Bankers Association. The CFPB was also sued by the Revenue Based Finance Coalition in U.S. District Court for Southern Florida. In a filing today in that case, the CFPB noted that its leadership has changed since the original rule was finalized, with Office of Management and Budget Director Russ Vought currently serving as the bureau’s active director. The bureau asked the court to suspend any further action until it has proposed a new rule.
The CFPB did not elaborate on when the proposed rulemaking would be released or what it would contain. The bureau proposed submitting reports to the court every 90 days during the rulemaking process, with the parties in the case conferring within 30 days of a new final rule to decide whether they want to proceed with the lawsuit.