Biden vetoes ICBA-advocated 1071 resolution

President Joe Biden vetoed an ICBA-advocated bipartisan resolution to overturn the Consumer Financial Protection Bureau’s Section 1071 rule.

Veto: The veto sends S.J.Res.32 back to Congress following passage on a 221-202 vote in the House earlier this month and a 53-44 Senate vote in October. To override the veto, Congress would need to pass the resolution with a two-thirds majority in each chamber.

Legislative Details: The resolution would provide for congressional disapproval of the 1071 rule and dictate that it has no force or effect, requiring the bureau to craft a new rule.

ICBA Push: In a letter to Biden and an op-ed on LinkedIn earlier this month, ICBA called on the president to sign the resolution into law, noting it passed the Senate and House on strong bipartisan votes.

Background: The ICBA-opposed CFPB rule requires lenders to collect and report data on credit applicants, including the race, sex, and ethnicity of the principal owners as well as gross annual revenue.

Outlook: As ICBA calls on lawmakers to override the president’s veto, community bankers can continue using ICBA’s customizable communications resources to educate and engage their customers on the ICBA-opposed 1071 rule.