On October 23, a group of banking organizations filed a
notice of appeal in the U.S. District Court for the Southern District of Texas seeking to challenge a decision impacting the CFPB’s Section 1071 rule. The plaintiffs now appeal to the U.S. Court of Appeals for the Fifth Circuit.
As previously covered by InfoBytes, the rule requires financial institutions to collect and disclose data about small business loan recipients’ race, ethnicity, gender, geographic information, lending decisions and credit pricing. On August 26, the District Court denied plaintiffs’ consolidated motion for summary judgment and granted the defendants’ combined cross-motion for summary judgment. The District Court held that the CFPB did not exceed its statutory authority under Dodd-Frank in promulgating the Section 1071 rule. Upon request from the plaintiffs, the District Court entered its final judgment on those rulings on September 23. The CFPB’s most recent exercise of Section 1071 involved launching a beta platform that will not count towards CFPB compliance (covered by InfoBytes
here).
