Representatives from the National Association of Federally-Insured Credit Unions (NAFCU) met with Consumer Financial Protection Bureau (CFPB) staff this week to discuss potential impact of a Dodd-Frank Act data collection requirement on credit unions.
The CFPB is currently requesting information on small business lending in preparation for future rulemaking mandated by Section 1071 of the Dodd-Frank Act. The provision requires financial institutions to collect and report information – whether the business is a small business and owned by women or a minority group – and give this information to the CFPB using systems similar to those used to collection information for the Home Mortgage Disclosure Act rule.
NAFCU discussed the relatively small size of the credit union business lending market compared with the overall market. The participants also talked about how the member business lending (MBL) cap and fixed costs of originating MBLs have led to two-thirds of the industry not originating MBLs.
CFPB put out a notice seeking comment with a due date of July 14. NAFCU along with 12 other industry trade associations asked for a 60-day extension, which would push the comment deadline to Sept. 12.
The NAFCU contingent included representatives from Andrews Federal Credit Union, CommonWealth One Federal Credit Union, Democracy Federal Credit Union, Lafayette Federal Credit Union, Money One Federal Credit Union and Washington Gas Light Federal Credit Union. Also in attendance were NAFCU Director of Regulatory Affairs Alexander Monterrubio, Senior Regulatory Affairs Counsel Michael Emancipator, and Regulatory Affairs Counsel Andrew Morris.