Lawmakers in the House and Senate have actually presented resolutions of displeasure under the Congressional Review Act to reverse the Consumer Financial Protection Bureau’s last guideline executing Section 1071 of the Dodd-Frank Act, which needs the collection and reporting of credit application information for small companies, consisting of women-owned and minority-owned small companies.
Rep. Roger Williams (R-Texas) presented the resolution in the House while Sen. John Kennedy (R-La.) presented a buddy resolution in the Senate. The House variation presently has 23 cosponsors while the Senate variation has 29 cosponsors. (While Congressional Review Act resolutions just need a basic bulk to pass, President Biden is not anticipated to sign the resolutions.)
American Bankers Association President and CEO Rob Nichols in March stated that banks oppose discrimination in any kind and assistance enforcement of reasonable financing laws, however the last guideline was needlessly significant and would hurt the relationship banking design. “Given the cost of implementing these significant new reporting requirements and their impact on lending, some community banks may be forced to limit their small business loan programs,” he stated. Nichols included that ABA was worried that the information produced would put small companies’ personal privacy at danger and might offer a possibly deceptive photo of small company financing to underserved groups.