The Consumer Financial Protection Bureau (Bureau) issued a proposed rule that would expand member business lending data collection requirements under the Dodd-Frank Act (Act). Section 1071 of the Act amended the Equal Credit Opportunity Act (15 U.S.C. § 1691 et seq.) by adding a requirement for financial institutions, including credit unions, to gather certain data from members applying for a small business loan. Currently Section 1071 lists 13 data points that must be gathered as part of the process. The Bureau, via the proposed rule, has chosen to expand the number of data points required to 23. The Bureau has also set the threshold for compliance on financial institutions originating 25 or more small business loans in each of the two prior calendar years. The Bureau, despite its exemption authority, has chosen not to create any exemption what-so-ever.
The Minnesota Credit Union Network, with input from the Regulatory Review Committee, will submit comments opposing the proposed rule. To drive further opposition to this data expansion, we need credit union voices to join ours by submitting a comment letter on behalf of your credit union. Please follow this link to a template you can use to voice your credit union’s opposition by the January 6, 2022 deadline. Visit the Federal Register, and click the green box at the top, “Submit a Formal Comment.”
Please let us know when your credit union has submitted a comment. It allows us to keep track and calibrate what our next steps should be to oppose this rule. If you have any questions, concerns, or issues drafting/submitting your comment, please do not hesitate to reach out to MnCUN’s General Counsel Tim Tacheny. Remember qui tacet consentire videtur (“Silence is consent”).
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