WASHINGTON, D.C. (RFD-TV) — Agricultural and rural lenders are backing proposed revisions to the Consumer Financial Protection Bureau’s small-business lending data rule, saying a narrower scope could help preserve access to credit in farm-dependent communities. The American Bankers Association, joined by 52 state bankers’ associations, supports scaling back data-collection requirements under Section 1071 of the Dodd-Frank Act, citing concerns about compliance costs and operational strain on community lenders.
The CFPB finalized its original Section 1071 rule in 2023, requiring financial institutions to report detailed data on small-business lending to support fair-lending oversight. That rule prompted lawsuits from banking groups, including the ABA and the Texas Bankers Association, arguing that expanded data mandates exceeded congressional intent and risked discouraging lending by smaller institutions.
Under the revised proposal, the CFPB would limit reporting to core lending products and raise thresholds for covered lenders. Banking groups also support moving the compliance date to January 1, 2028, while seeking added flexibility in determining loan-volume thresholds.
Farm and rural lenders have long warned that broad reporting rules could slow operating, equipment, and land loans by diverting staff time and resources.
Farm-Level Takeaway: A narrower Section 1071 rule could reduce regulatory pressure on ag lenders while keeping credit available in rural communities.
Tony St. James, RFD-TV Markets Specialist
January 02, 2025 02:01 PM
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