Credit unions need to comment on a sweeping proposal that would require financial institutions to collect and report data on the credit applications of small businesses to CFPB. CUNA issued an action alert Tuesday urging credit unions to share their concerns about the proposal. Comments will be due by Jan. 6.
The new rule, proposed in September, would amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) made by section 1071 of the Dodd-Frank Act. In addition, the Bureau is proposing to require financial institutions to collect and report data on applications for credit for small businesses, including those that are owned by women or minorities.
Several provisions in the proposed rule would increase credit unions’ reporting burden.
- A financial institution would be required to comply with the data collection if it originated at least 25 “covered credit transactions” to “small businesses” in each of the two preceding calendar years.
continue reading »