WASHINGTON, D.C. – The U.S. Senate today failed to override the presidential veto of S.J.Res. 32, a Republican-led Congressional Review Act (CRA) resolution to repeal the Consumer Financial Protection Bureau’s (CFPB) implementation of Section 1071 of the Dodd-Frank Act. Sec. 1071 is a sunshine provision requiring large lenders to collect and report demographic data on small business loans.
While Section 1071 was part of the Dodd-Frank Act passed more than a decade ago, the rule for this provision was only finalized last year. The CFPB’s final 1071 rule, which mirrors existing requirements for mortgage lending data under the Home Mortgage Disclosure Act (HMDA), will be implemented over the coming years, allowing smaller lenders more time to adjust and comply with the data collection and reporting requirements. Last month, President Biden vetoed the CRA bill that would have rescinded Section 1071.
Mitria Spotser, vice president and federal policy director at the Center for Responsible Lending (CRL), made the following statement in response to the U.S. Senate’s effort to override the President’s veto:
We commend the Administration and CFPB Director Chopra for standing up for the millions of small business owners that power our nation’s economy. It took the pandemic and the shortcomings of the Paycheck Protection Program (PPP) to prove this rule should have been implemented much earlier. Robust 1071 reporting requirements will spur entrepreneurship, ensure that historically underserved businesses have sufficient access to capital and foster a more inclusive economy.
A recent poll sponsored by CRL and Americans for Financial Reform (AFR), shows that 73% of voters across political parties overwhelmingly support Section 1071 to track inequalities in access to credit for women, Black, Latino, Asian and rural business owners while 18% of voters oppose it.
The effort to get this law implemented was supported by nearly 100 national and state organizations representing small business, agriculture, rural, lender, civil rights and consumer advocate groups, including the Center for Responsible Lending, Americans for Financial Reform Education Fund, California Reinvestment Coalition, Leadership Conference on Civil and Human Rights (LCCR), Hispanic Federation, National CAPACD, National Urban League, NAACP, National Community Reinvestment Coalition (NCRC), National Consumer Law Center (on behalf of its low-income clients), Unidos US, National Urban League, United States Hispanic Chamber of Commerce, among others.
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