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Joint Trades Letter to CFPB Regarding 1071 Implementation and the Impact of the Texas Bankers Association Lawsuit
Dear Director Chopra,
The American Financial Services Association (AFSA), Consumer Bankers Association (CBA), CRE Finance Council (CREFC), Equipment Leasing and Finance Association (ELFA), Mortgage Bankers Association (MBA), National Association of Federally-Insured Credit Unions (NAFCU), Truck Renting and Leasing Association (TRALA), and the U.S. Chamber of Commerce (Chamber) (together, the “Trades”) write to urge action by the CFPB to address the current disparity that exists for financial institutions working to implement the CFPB’s Small Business Lending Data Collection Rule (the “1071 Rule”). Some of these trade associations have also written to you individually.
As described more fully below, the current situation considering the decision in Texas Bankers Association et al v. Consumer Financial Protection Bureau et al poses serious compliance challenges for the membership of the Trades, as institutions that are identically subject to the 1071 Rule are now effectively subject to different compliance and implementation dates. This situation is harmful to all stakeholders, and in order to preserve equity for covered financial institutions, the CFPB should act to establish new effective dates and compliance dates for all institutions subject to the 1071 Rule. Failure to bring cohesion to the group of institutions subject to the 1071 Rule will only lead them to explore judicial remedies, which will be highly inefficient