Banking

ABA, TBA ask CFPB to postpone 1071 compliance dates for all banks

In the wake of a judge’s order delaying compliance dates with the CFPB’s Section 1071 last guideline for Texas Bankers Association and ABA members, TBA and ABA the other day asked CFPB Director Rohit Chopra to utilize his discretion to use the stay to all FDIC-insured banks.

“As you know, we requested relief for every entity subject to the final tule, but the court limited that relief to members of our associations (including co-plaintiff Rio Bank),” TBA and ABA composed. “While most FDIC-insured banks fall within our membership, there are some that do not. We recognize the bureau’s desire to continue pressing forward with certain covered institutions and so are only asking for your consideration of extending the stay to the banking industry. We believe this would simplify things for both your agency and the regulated community.”

The judge’s initial injunction can be found in a case brought by TBA, Rio Bank and ABA challenging the Section 1071 guideline on administrative and constitutional premises. The injunction remains the last guideline while a constitutional difficulty to the CFPB is pending in the Supreme Court, permitting banks to prevent pricey compliance preparation with the bureau’s constitutionality under concern. A choice in the different case is anticipated in the very first half of 2024.

“With oral argument in Community Financial in 60 days and a decision likely within six to eight months, we believe the CFPB extending the relief already provided to numerous banks nationwide would be prudent and ameliorate confusion,” TBA and ABA included their letter to Chopra. “This could take whatever form the Bureau deems appropriate (i.e., amending compliance dates or providing other guidance).” Register for a totally free ABA professional webinar on the 1071 injunction.

Gabriel

A news media journalist always on the go, I've been published in major publications including VICE, The Atlantic, and TIME.

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