ICBA opposes FCS exemption in Section 1071 rule

ICBA urged House Agriculture Committee leaders to oppose any exemption for Farm Credit System lenders from the Consumer Financial Protection Bureau’s 1071 small-business data collection and reporting rule.

Details: In a letter to Chairman Glenn Thompson (R-Pa.) and Ranking Member David Scott (D-Ga.), ICBA said:

• It is deeply concerned by reports that the farm bill to be taken up next week may include an exemption allowing FCS lenders to have very limited compliance with the CFPB’s new rule under Section 1071.

• The government must not pick winners and losers in the rural economy through selective regulatory exemptions or new provisions only granted to some stakeholders.
  

Background: Thompson’s bill summary cites enhancements to USDA guaranteed farm loan programs, including ICBA-advocated provisions to raise loan limits and speed up turnaround times on approvals of USDA guaranteed loans under $500,000. However, the summary also contains ICBA-opposed expansions for the tax-exempt FCS, including expanded financing authority and a dramatically lower compliance burden from the 1071 small-business rule.

Grassroots Push: With Thompson planning to hold a markup on Thursday, May 23, ICBA is urging community bankers to use the Be Heard grassroots action center to call members of Congress and urge passage of the farm bill without FCS expansion.