More than 10 years after a mandate in the Dodd-Frank Act, the CFPB proposed data collection requirements for small business lending. The proposal could impact around 5,000 lenders.
Consumer advocates are largely pleased with the proposal while lenders sounded alarms. The CFPB acknowledged that the data collection will prompt significant costs.
In a first-of-a-kind study, the CFPB examined commercial credit reporting and its impact on consumer credit. But is the bureau highlighting an area for later enforcement action?
In a review report, small entities asked the CFPB to draft simple regulations to implement small business lending data collection requirements to reduce compliance burden and expand credit access.
A court settlement has forced the CFPB to outline proposed rulemaking on data collection requirements in the small-business lending space no later than September.
The CFPB will hold a symposium Wednesday to discuss data collection on small business lending; Supreme Court sets briefing schedule in Seila Law v. CFPB.
CFPB Director Kathy Kraninger was grilled by Democratic lawmakers regarding enforcement actions during hearings on Capitol Hill. Other topics such as fair lending, innovation policies and qualified-mortgage patch were also on the agenda.
Lenders now have 15 more months to comply with the underwriting requirements of the payday lending rule. The CFPB is still considering rescinding that portion.
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