Judge Randy Crane (S.D. Tex) ruled on August 26, 2024 that the CFPB did not exceed its authority under Dodd Frank when it issued its final Section 1071 small business lending rule. The court also rejected other Administrative Procedure Act (APA) challenges to the rule. However, the court did not issue a final judgment as, at that time, the court still had to rule on the two motions filed by certain plaintiff-intervenors: first, to amend their complaint to add a claim based on the illegality of the CFPB being funded by the Federal Reserve Board, when since September, 2022, “the combined earnings of the Federal Reserve System” has been negative and second, for judgment on the pleadings.… Continue Reading
Section 1071
Plaintiffs free to appeal CFPB 1071 Rule after some plaintiffs drop their CFPB unlawful funding claim
On August 26, 2024, Chief Judge Randy Crane in the S.D. Texas granted summary judgment to the CFPB, denied summary judgment to the trade groups and upheld the CFPB’s 1071 Rule (small business loan data collection rule).
On August 2, 2024, the Farm Credit Intervenors (three organizations who long ago intervened as plaintiffs in order to take advantage of a preliminary injunction against the CFPB granted to the original plaintiffs based on the Fifth Circuit’s opinion in CFSA v.… Continue Reading
CFPB Announces the Beta Platform for Small Business Lending Data Reporting
By Loran Kilson & Kaley Schafer on
The CFPB announced the availability of its beta platform for the small business lending data collection rule pursuant to section 1071 of the Dodd-Frank Act.
The CFPB has invited financial institutions to test the platform by uploading and using test files provided in the CFPB’s test file repository, or by uploading the financial institution’s own test or sample files.… Continue Reading
Federal District Court in Texas which recently validated CFPB’s small business data collection rule might entertain “new” funding challenge to CFPB
By Alan S. Kaplinsky on
On August 26, 2024, Chief Judge Randy Crane in the S.D. Texas granted summary judgment to the CFPB, denied summary judgment to the trade groups and upheld the validity of the CFPB’s small business data collection rule. However, the Judge still needs to rule on a motion to amend the complaint and a motion for judgment on the pleadings.… Continue Reading
Unlawful funding argument raised in challenge to final CFPB rule
By Alan S. Kaplinsky on
We have previously blogged about how targets of CFPB enforcement actions have asserted that the actions must be dismissed because the investigations were conducted and the lawsuits were brought and are being prosecuted with funds unlawfully obtained from the Federal Reserve Board at a time when the Federal Reserve System had no combined earnings.… Continue Reading
CFPB Releases Updated 1071 Filing Instructions Guide
On August 16, 2024 the CFPB issued an updated 2025 Small Business Lending Filing Instructions Guide (the “Guide”). The Guide provides updated compliance dates that correspond to the new compliance dates.
As a refresher, the CFPB previously issued an Interim Final Rule extending the compliance dates for the Small Business Lending Rule in light of the Supreme Court’s decision finding the funding structure of the CFPB to be constitutional in CFPB v.… Continue Reading
CFPB Releases Interim Final Rule Extending 1071 Rule Compliance Dates
On June 25th, the CFPB issued an interim final rule with a request for public comment extending the compliance dates for the Small Business Lending Rule in light of the Supreme Court’s decision finding the funding structure of the CFPB to be constitutional in CFPB v. Community Financial Services Association of America (CFSA).… Continue Reading
CFPB responds to SCOTUS decision; extends 1071 small business lending rule compliance dates
By Loran Kilson on
On May 16, 2024, the U.S. Supreme Court, in a 7-2 decision, ruled that the CFPB’s funding mechanism does not violate the Appropriations Clause of the U.S. Constitution. That ruling is discussed here.
Shortly after the ruling, the CFPB issued a statement about the decision. It stated that “The Supreme Court has rejected [the] radical theory that would have devastated the American financial markets.… Continue Reading
CFPB Files Cross-Motion for Summary Judgment in Texas Small Business Lending Rule Lawsuit
The CFPB (or “Bureau”) filed a cross-motion for summary judgment in the lawsuit regarding the small business lending data collection and reporting rule, also known as the 1071 rule based on the Dodd-Frank section that requires the CFPB to adopt the rule (the “Rule”). Last month, the plaintiffs and intervenors in the lawsuit challenging the Rule filed a consolidated motion for summary judgment.… Continue Reading
Plaintiffs and intervenors file summary judgment motion in Texas lawsuit challenging CFPB small business data collection rule
The plaintiffs and intervenors in the lawsuit filed in a Texas federal district court challenging the CFPB’s final small business lending rule implementing Section 1071 of Dodd-Frank (Rule) have filed a consolidated motion for summary judgment. The plaintiffs in the lawsuit are the Texas Bankers Association, Rio Bank, McAllen, Texas, and the American Bankers Association. … Continue Reading