Lawsuit Challenges CFPB Reporting Rule For Small Business Lending

On April 26, an association of Texas state banking organizations and a Texas minority depository institution filed a joint complaint against the CFPB in Texas federal court seeking to invalidate a recently finalized agency rule requiring lenders to gather and report data on loan applications from minority, LGBTQ+, and women-owned small businesses (see previous blog post detailing this rule here). The CFPB rule requires that small business lenders must collect and report on the following data points:

• the application date, the application method, the application recipient, the action taken by the financial institution, and the date the action was taken;
• the credit type, credit purpose, and amount of credit for which the applicant applied;