CFPB outlines plan for small biz data collection rule
The CFPB is seeking summary judgment in a lawsuit brought against it for allegedly violating the Administrative Procedures Act (APA). The California Reinvestment Coalition, National Association for Latino Community Asset Builders, and two individual small business owners claim the bureau has violated the law by not issuing regulations to implement Section 1071 of the Dodd-Frank Act, which is related to small business lending data collection.
In its motion for summary judgment to the U.S. District Court for the Northern District of California, the bureau argues that it has not violated the APA as Congress did not stipulate a timeline for this rulemaking. In addition, the bureau cites its recent symposium on the issue as proof that it “has made considerable progress in undertaking the information-gathering necessary to support an informed rulemaking.”
The bureau also outlines its rulemaking plan for Section 1071:
- In the next six months, the bureau plans to complete its recommendation and briefing to Director Kathy Kraninger.
- Next, the bureau will begin the Small Business Regulatory Enforcement Fairness Act (SBREFA) process to determine the rule’s impact on small businesses, as well as seek Office of Management and Budget approval to conduct a survey of estimated one-time costs to lenders responsible for reporting data under the rule.
continue reading »
