President Biden on Tuesday vetoed a Senate joint resolution to overturn the CFPB’s final rule implementing Section 1071 of the Dodd-Frank Act, which requires the collection and reporting of credit application data for small businesses. S.J. Res 32 cleared both houses of Congress with bipartisan support, but it needed the president’s signature to take effect.
The American Bankers Association urged Congress to support S.J. Res 32 in a November letter to lawmakers, saying that while banks are committed to fair lending, the enormity of the data points to be collected and the 100-loan threshold for determining which lenders must report means compliance will place significant burdens on banks, particularly community banks. Earlier this year, the association joined the Texas Bankers Association in suing to overturn the rule. A Texas judge in July issued a preliminary injunction against enforcement of the rule until the U.S. Supreme Court issues a decision in a separate case concerning the constitutionality of the CFPB’s funding structure.
“We are disappointed that [President Biden] chose to ignore the strong, bipartisan majority in Congress that voted to overturn the CFPB’s harmful small business lending reporting requirements,” ABA said in a statement on X, formerly known as Twitter. “An override of his veto would be a vote for small businesses and the lenders that support them.”
