Banking

State lenders associations prompt CFPB to postpone 1071 execution

The Consumer Financial Protection Bureau needs to extend a court-ordered stay of its Section 1071 last guideline to cover all FDIC-insured banks while the U.S. Supreme Court thinks about a different legal obstacle worrying the bureau, 50 state lenders associations stated today in a letter to CFPB Director Rohit Chopra. A federal judge in Texas recently released an initial injunction of the guideline up until the Supreme Court picks a case including the constitutionality of the bureau’s financing structure in CFPB v. Community Financial Services Association of America.

The 1071 case was brought by the Texas Bankers Association, Rio Bank and the Amerian Bankers Association, which requested for a nationwide injunction covering all loan providers. However, the judge agreed the CFPB’s demand to have the order use just to the associations’ members. ABA and TBA have actually considering that asked Chopra to postpone 1071 compliance for all banks, and in their letter, the state associations duplicated that demand.

“As the TBA and the ABA asserted in their letter, a stay from the bureau would streamline administration for the agency after the Supreme Court’s ruling in the Community Financial case by including all banks and not just those that are members of TBA or ABA,” the associations stated. “We agree that extending the relief already provided to numerous banks nationwide would be prudent and ameliorate confusion.”

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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