Call-to-Action: Expanded Dodd-Frank Act Data Collection poses threat to member business lending
Published by: Sean Brown
November 16, 2021 | Regulatory
Ohio’s member business lending credit unions have been complying with the Dodd-Frank Act since its inception, more than ten years ago; however, fairness is about to get a whole lot harder. On Oct. 8, 2021, the Consumer Financial Protection Bureau (CFPB) published a proposed rule to require lenders to compile, maintain, and submit additional data on credit applications by women-owned, minority-owned, and small businesses. The rule itself is over 900 pages, and the summary is over 250 pages. To save your credit union time, the Credit Union National Association created this helpful one-page “cheat sheet.”
While the original intent of the Dodd-Frank Act was, and remains, noble, this massive expansion of the data collected is a misguided attempt to increase compliance to the detriment of those who are already compliant. The League fully supports facilitating the enforcement of fair lending laws and enabling communities, governmental entities, and creditors to identify business and community development needs and opportunities for women-owned, minority-owned, and small businesses, but not in a manner that harms the financial institution.
What is at stake, more than ever, is consumers’ continued access to safe and affordable financial services provided by cooperative financial institutions. Ohio’s credit unions cannot continue to be tasked with more regulations and be expected to keep consumer access to products inexpensive and available. The Movement is about People Helping People, and so is the original intent of the Dodd-Frank Act; at what point does regulation itself take away from the credit union mission?
Want to oppose this proposed rule? Reach out and connect with the League’s Director of Regulatory Affairs, Sean Brown, for a comment letter template and filing instructions.
Contact Sean Brown for questions or assistance.