On May 28, the CFPB filed a motion with the U.S. District Court for the Eastern District of Kentucky, requesting to stay proceedings in a case involving the Small Business Lending Rule. The CFPB made this request to undertake a new rulemaking process under Section 1071 of the Dodd-Frank Act and anticipated issuing a new NPRM “as expeditiously as reasonably possible.”
As previously covered by InfoBytes, and earlier this month, another district court granted a stay of the final rule, allowing the CFPB to reconsider its provisions. This stay also extends compliance deadlines to ensure equitable treatment for all regulated entities and provides sufficient time for the new rulemaking process. Furthermore, the CFPB had previously announced it will not prioritize enforcement or supervision under the final rule (covered here). The CFPB has requested the court to stay the case until 14 days after the promulgation of any revised rule, aiming to conserve judicial resources and avoid unnecessary proceedings.
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