House members raise concerns with CFPB’s 1071 rule

Several members of Congress expressed concerns with the community bank impact of the Consumer Financial Protection Bureau’s pending rule implementing Section 1071 small-business reporting requirements.

Congressional Concerns: During a House Financial Services Subcommittee on Financial Institutions hearing on CFPB reform, Rep. Roger Williams (R-Texas) said the 1071 rule would harm relationship banking. Rep. Young Kim (R-Calif.) said the rule would harm the minority- and women-owned small businesses it is designed to help.

On Deadline: The CFPB has said it plans to issue a 1071 final rule by March 31. The CFPB agreed to the deadline as part of a lawsuit designed to compel the bureau to finalize the rulemaking.

ICBA Advocacy: ICBA continues advocating relief from the bureau’s 1071 plan, in which the bureau is proposing to nearly double the number of reporting data points required by Congress. In an American Banker op-ed last year, ICBA President and CEO Rebeca Romero Rainey said the CFPB should exercise its authority to tailor its rulemaking to avoid restricting access to credit.