Consumer groups to CFPB: Issue tough small business lending rule

by David Baumann, Washington CU Daily

A Consumer Financial Protection Bureau rule to require financial institutions to report data on their lending to minority-owned and women-owned businesses should include as many banks and credit unions as possible, with the information easily accessible to the public, consumer and community groups said last week.

The National Community Reinvestment Coalition applauded the agency’s proposed rule for doing just that, saying that requiring all lenders that make at least 25 loans to report demographic information to the CFPB would ensure that most banks and credit unions are included.

Credit union trade groups last week called on the agency to increase that threshold to 500 loans.

If the CFPB increases the threshold to 50 loans, only 52% of all banks would be required to report data, the NCRC wrote in its comments on the proposed rule. If it is increased to 500 loans, only one-third of banks would have to report lending information, the group said.

 

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