ABA Banking Journal
No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
SUBSCRIBE
ABA Banking Journal
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive
No Result
View All Result
No Result
View All Result
ADVERTISEMENT
Home Commercial Lending

ABA joins Texas lawsuit to block CFPB’s Section 1071 rule

May 18, 2023
Reading Time: 2 mins read
ABA joins Texas lawsuit to block CFPB’s Section 1071 rule

ABA President and CEO Rob Nichols (left) speaks with Texas Bankers Association President and CEO Chris Furlow during TBA's Annual Convention in San Antonio on May 18. (Photo courtesy of TBA)

ABA President and CEO Rob Nichols announced today that ABA has joined a lawsuit filed by the Texas Bankers Association and McAllen, Texas-based Rio Bank challenging the CFPB’s final rule implementing Section 1071 of the Dodd-Frank Act. Nichols made the announcement during his remarks at the TBA Annual Convention in San Antonio.

Section 1071 requires the collection and submission of data related to credit applications by women-owned, minority-owned and small businesses. The lawsuit, filed in the Southern District of Texas, argues that the Section 1071 final rule goes well beyond the 13 data points specified in the Dodd-Frank Act to impose a final rule that “requires banks to develop and implement new software and compliance mechanisms to address over 80 reporting requirements that have been exponentially grown by the CFPB since the Act requiring this Rule was passed.” The plaintiffs contend the significant reporting requirements will force some community banks out of small business lending altogether, which would only harm women-owned and minority-owned small businesses.

The plaintiffs argue that by promulgating a final rule beyond the statutory scope, the bureau engaged in “an abuse of agency discretion” under the Administrative Procedure Act, and that by failing to account for industry comments relevant to the purpose of the statute and by failing to conduct a proper cost-benefit analysis, the bureau acted arbitrarily and capriciously in violation of the APA. In addition, the plaintiffs contend that the CFPB’s funding structure violates the constitutional separation of powers, thus voiding the Section 1071 final rule. The plaintiffs also ask the court to stay the rule while the case is litigated so that banks do not have to devote significant resources to comply with an invalid rule.

“We’re pleased to join the Texas Bankers Association and the Rio Bank in this important legal effort to rein in an agency that has consistently sought to stretch and exceed its statutory powers,” Nichols said. “We are fighting this rule because it will make it harder not easier for banks to serve the underrepresented communities it is supposed to help.” ABA is also asking bankers to take grassroots action on H.J. Res. 50, a bill that would seek to use the Congressional Review Act to rescind the Section 1071 final rule.

ADVERTISEMENT
Tags: Fair lendingSection 1071Small business lending
ShareTweetPin

Related Posts

ABA urges FCC to combat illegal call spoofing

ABA urges FCC to impose call authentication requirement for non-IP networks, mandate IP transition

Compliance and Risk
July 16, 2025

ABA joined six trade associations in urging the FCC to adopt a proposal to create a new call authentication requirement designed to limit criminal access to the U.S. calling network.

ABA faults banking regulators for confusing CRA rule rollout

Banking agencies propose to rescind Community Reinvestment Act rule

Community Banking
July 16, 2025

The Federal Reserve, FDIC and OCC issued a joint proposal to rescind the Community Reinvestment Act final rule adopted in 2023.

Bank economists grow more optimistic about business credit, soft landing

Beige Book: Economic activity ticks up

Economy
July 16, 2025

Economic activity increased slightly from late May through early July, with five Federal Reserve districts reporting slight or modest gains, five with flat activity and the remaining two experiencing modest declines in activity, according to the fifth Beige...

ABA banker: Long-term Farm Bill would boost ag economy

ABA banker: Long-term Farm Bill would boost ag economy

Ag Banking
July 16, 2025

The agricultural provisions in the recently enacted budget reconciliation bill will provide a strong backstop for agricultural producers, but a long-term Farm Bill is still needed, Clint Hood, SVP for Synovus Bank in Dublin, Georgia, told House lawmakers.

CFPB releases mortgage servicing proposal, overhauls loss mitigation framework

FHFA releases FAQ about Fannie, Freddie credit score change

Compliance and Risk
July 16, 2025

FHFA released an FAQ on the recent announcement that Fannie Mae and Freddie Mac will expand credit scoring options. Fannie and Freddie have also created webpages about the planned implementation of the policy.

Industrial production rose in March

Industrial Production rose in June

Economy
July 16, 2025

Industrial production (IP) rose 0.3% in June after remaining unchanged in April and May. For the second quarter as a whole, IP increased at an annual rate of 1.1%.

NEWSBYTES

ABA urges FCC to impose call authentication requirement for non-IP networks, mandate IP transition

July 16, 2025

Banking agencies propose to rescind Community Reinvestment Act rule

July 16, 2025

Beige Book: Economic activity ticks up

July 16, 2025

SPONSORED CONTENT

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

Navigating Disruption in Ag Lending – Why Tariffs Are Just the Tip of the Iceberg

July 1, 2025
AI Compliance and Regulation: What Financial Institutions Need to Know

Unlocking Deposit Growth: How Financial Institutions Can Activate Data for Precision Cross-Sell

June 1, 2025
Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

Choosing the Right Account Opening Platform: 10 Key Considerations for Long-Term Success

April 25, 2025
Outsourcing: Getting to Go/No-Go

Outsourcing: Getting to Go/No-Go

April 5, 2025

PODCASTS

Breaking down the bank-related provisions in the big budget bill

July 10, 2025

Podcast: Inside ABA’s new Treasury Check Verification System API

June 25, 2025

Podcast: Staying close to clients amid tariff-driven volatility

June 18, 2025
ADVERTISEMENT

American Bankers Association
1333 New Hampshire Ave NW
Washington, DC 20036
1-800-BANKERS (800-226-5377)
www.aba.com
About ABA
Privacy Policy
Contact ABA

ABA Banking Journal
About ABA Banking Journal
Media Kit
Advertising
Subscribe

© 2025 American Bankers Association. All rights reserved.

No Result
View All Result
  • Topics
    • Ag Banking
    • Commercial Lending
    • Community Banking
    • Compliance and Risk
    • Cybersecurity
    • Economy
    • Human Resources
    • Insurance
    • Legal
    • Mortgage
    • Mutual Funds
    • Payments
    • Policy
    • Retail and Marketing
    • Tax and Accounting
    • Technology
    • Wealth Management
  • Newsbytes
  • Podcasts
  • Magazine
    • Subscribe
    • Advertise
    • Magazine Archive
    • Newsletter Archive
    • Podcast Archive
    • Sponsored Content Archive

© 2025 American Bankers Association. All rights reserved.