On April 30, the CFPB announced it would not prioritize supervision or enforcement of the Section 1071 small business lending rule for entities that are not covered by the court-ordered stay. As previously covered by InfoBytes, the CFPB’s final rule, which implements Section 1071 of the Dodd-Frank Act, requires financial institutions to collect and report to the Bureau data on small business credit applications to promote fair lending practices and enhance transparency in lending. According to the Bureau’s announcement, the CFPB intends to focus its resources on what it deems current threats to consumers, like those affecting servicemen and veterans. An appellate court ordered a stay indefinitely of the small business lending data rule in February (covered by InfoBytes here).
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