WASHINGTON–America’s Credit Unions said it has made available a new Final Regulation Summary of the CFPB’s small business lending data collection rule.
The final fule, which was finalized April 30, includes numerous changes credit unions had sought to “reduce regulatory burdens while still enabling credit unions to serve their members effectively,” the trade geoup said.
The Benefits
According to America’s Credit Unions, revised from a 2023 final rule, the narrower scope will benefit credit unions by:
- Raising the origination threshold for covered financial institutions to 1,000 covered transactions for each of the preceding two years and excludes Farm Credit System lenders from coverage
- Lowering the gross annual revenue threshold defining a small business to $1 million
- Limiting data collection to the statutory 1071 data points and removes many discretionary data points
- Revising regulatory text and the associated commentary to adopt a more flexible standard regarding the time and manner of collecting applicant demographics
- Eliminating the previous tiered compliance dates in favor of a single, uniform compliance date for all covered financial institutions: Jan. 1, 2028.
The summary, which can be found here, also includes a link to the final rule, background on its development, section-by-section analysis, and more, America’s Credit Unions said.
The rule takes effect June 30.
