The Trump administration has delayed compliance with the rule until mid-2026 at the earliest and the CFPB is working to revise the Biden-era requirements. Trade groups representing lenders provided plenty of suggestions to reduce burdens from the rule.
The stay for now only applies to some lenders. But a pending court ruling in a Kentucky lawsuit against the bureau’s Section 1071 rule could stay compliance with the rule for all covered entities.
CSBS is taking a close look at loan officer education compliance; CFPB fines Global Tel Link $3 million; CFPB releases details from student loan survey; pilot study by CFPB finds differences in how lenders treat minorities that own small businesses; Comerica Bank files lawsuit challenging CFPB investigation; Fifth Circuit denies request to reopen case against CFPB’s payday lending rule.
Some banks continue to press the CFPB for a reporting exemption for small banks as the rule will create additional burdens on these banks who may get frustrated and end up selling or closing their businesses.
The CFPB set new implementation dates for its small business lending data reporting rule and the payday lending rule. However, the new deadlines could still face court challenges.
A Texas district court expanded its injunction against the CFPB’s small-business lending data collection requirements. Meanwhile, the Senate voted to overturn the rule though President Biden threatened a veto.
Among the deals that are exposed to small-business borrowers are trucking and small-ticket equipment asset-backed securities, small-balance commercial ABS and premium finance ABS.
The CFPB has established new reporting requirements on loans for small businesses. Investment-property loans already reported under HMDA are exempt from the new standards.