Removing Barriers Blog

CUNA Meets with CFPB on Small Business Data Collection

CUNA and several credit unions met yesterday with the CFPB to discuss the recently released Request for Information (RFI) regarding the small business lending market. This RFI is the pre-rule stage for implementing Section 1071 of the Dodd-Frank Reform and Consumer Protection Act that amends the Equal Credit Opportunity Act requiring financial institutions to compile and submit information concerning credit applications made by women-owned, minority-owned, and small businesses. CUNA has long expressed concerns over this rulemaking to the extent that it would negatively impact a credit union’s ability to operate in this space. Credit unions have been engaging in responsible lending in this market and often fill underserved areas. The credit unions present at the meeting discussed their operations at length and discussed their various strategies surrounding small businesses and how the rulemaking might impact their members.

CUNA has recently requested a 60-day extension to the short 45-day comment period in order to properly formulate a response to the RFI. Having gained more insight and a better understanding of the direction of the CFPB with this rulemaking, CUNA will convene a working group from CUNA’s Lending Council comprised of experts in business lending to help shape it’s comments.

CUNA is asking for input from credit unions on this RFI and requests that any credit union concerned or impacted by this rulemaking to consider submitting comments to the CFPB. We will continue to keep you updated as this project progresses.