Banking

ABA advises House legislators to support resolution to reverse 1071 guideline

In a letter to House leaders today, the American Bankers Association prompted legislators to authorize a Senate joint resolution to reverse the CFPB’s last guideline executing Section 1071 of the Dodd-Frank Act, which needs the collection and reporting of credit application information for small companies. S.J. Res. 32 cleared the Senate in October with bipartisan assistance. The resolution would require to be authorized by both homes of Congress and signed by the president to reverse the CFPB guideline.

“While industry fully supports complying with the nation’s fair lending laws, the enormity of the data points to be collected and the 100-loan threshold for determining which lenders must report means compliance with this new rule will place significant burdens on banks, especially community banks,” ABA stated. Further, the guideline’s meaning of a small company as one with gross yearly profits of $5 million or less “expands the rule to cover medium and larger businesses, going beyond what Congress intended,” the association included.

The last guideline states that the CFPB has actually not chosen what car it will utilize to make personal privacy decisions however does not think it is lawfully needed to go through a public rule-making treatment to identify whether and how information will be redacted previous to publication, ABA stated. “Publication will create privacy concerns for small businesses that do not want their information made public and will not have a say in it,” it stated. The association likewise kept in mind that while Section 1071 uses to nonbanks and banks alike, banks will be frequently taken a look at for compliance and information precision while nonbanks won’t deal with such examination.

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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