This week, the CFPB filed an emergency notice in the Fifth Circuit Court of Appeals, indicating that it no longer opposes a pause in compliance with its Section 1071 small business data-collection rule (previously discussed here, here, and here). This marks a significant departure from its previous stance as it navigates ongoing legal challenges from lenders.Continue Reading CFPB Signals Shift in Position on Section 1071
On November 15, the U.S. District Court for the Southern District of Texas overseeing the ongoing legal challenge to the CFPB’s Section 1071 small business lending rule (previously discussed here, here, here, and here), issued an order denying the plaintiff trade groups’ motion to toll the deadlines of the rule while an appeal moves through the Fifth Circuit.Continue Reading Federal Court Denies Request to Delay CFPB’s Small Business Lending Rule as Compliance Deadlines Approach
On November 13, the Consumer Financial Protection Bureau released a “pilot study” on the small business lending market revealing “significant disparities” in how lenders treat black and white small business owners. As part of its study, the CFPB conducted matched-pair testing at 50 bank branches in New York and Virginia using actors who posed as small business owners. Black participants were provided slightly more favorable financial profiles compared to the white participants. In many tests, the black and white participant each met with the same bank representative.Continue Reading CFPB Study Finds Differential Treatment in the Small Business Lending Market
On March 24, Utah Governor Spencer Cox signed SB 183 into law making Utah the third state in the country to enact a Truth in Lending-like commercial financing disclosure law. Utah joins California and New York to adopt such statutory commercial financing disclosure requirements. As opposed to similar laws in California and New York, however, the Utah Commercial Financing Registration and Disclosure Act (the Act) does not include an “APR” disclosure requirement and requires commercial lenders to register as commercial loan providers with the Nationwide Multistate Licensing System and Registry and Utah Department of Financial Institutions (DFI). The law has an effective date of January 1, 2023.
Continue Reading Utah Enacts Commercial Financing Disclosure Requirement