The Consumer Financial Protection Bureau (CFPB) has decided against enforcing a Biden-era rule mandating demographic data collection from small business lenders. This decision, announced on Wednesday, prioritizes resource allocation, even though the agency has already reduced enforcement and supervision efforts across other areas.
The CFPB's decision to not prioritize enforcement or supervision actions for compliance with this data collection rule, effective July for most lenders, stems partly from a February ruling by the US Court of Appeals for the Fifth Circuit. This court issued a stay on the rule for members of the Independent Community Bankers of America.
The article does not fully detail the broader impact this postponement will have on small businesses or the data collection efforts aiming to understand lending disparities. Further developments will be important to watch.
The Consumer Financial Protection Bureau said it won’t enforce a Biden-era small business lending demographic data rule so that it can preserve resources, even though agency leaders have already shut down most enforcement and supervision work in other areas.
The CFPB will not “prioritize enforcement or supervision actions” for compliance with the data collection rule, which is set to take effect for most lenders beginning in July, the agency announced Wednesday.
The decision was made in part because the US Court of Appeals for the Fifth Circuit in February issued a stay of the rule for members of the Independent ...
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