Yesterday, as stipulated in the settlement agreement for the Trump-era lawsuit California Reinvestment Coalition v. Consumer Financial Protection Bureau (CFPB), the CFPB informed the court it has agreed to a court-ordered deadline of March 2023 for an issuance of a final rule implementing Section 1071 of the Dodd-Frank Act. Section 1071 requires the CFPB to collect and disclose data on lending to small businesses and women- and minority-owned businesses to facilitate enforcement of fair lending laws to curb lending discrimination. The lawsuit was brought in 2019 by Democracy Forward on behalf of the California Reinvestment Coalition (CRC), the National Association for Latino Community Asset Builders (NALCAB), Deborah Lynn Field, and Reshonda Young. The groups filed suit when the Trump administration defied the Dodd-Frank Act by failing to collect and disclose data on lending to women-owned, minority-owned, and small- businesses.
Yesterday’s announcement is another victory in a years-long legal challenge seeking to protect women-owned, minority-owned, and small businesses against discriminatory lending.
In response, the groups issued the following statement:
“The Trump administration broke the law and turned its back on women, minority, and small-business owners when it refused to implement Section 1071 . We are pleased that the CFPB’s current leadership, per the terms of our settlement, has affirmed its commitment to advancing this statutorily required, critical and overdue rulemaking.
Section 1071 is critical to advancing gender and racial equity in lending. The full implementation of Section 1071 is integral to increasing transparency, fostering enforcement of fair lending laws, and providing the data needed to increase opportunities for women-owned, minority-owned, and small businesses. We will remain vigilant to ensure this final rule is issued and implemented.”
Read the stipulation here.