The Supreme Court has ruled on the constitutionality of the CFPB’s funding. I am somewhat surprised by the outcome and glad a decision was announced on May 16, 2024.
A second Motion for Summary Judgement was filed by the TBA, Rio Bank, and the ABA, essentially saying that the Final Rule for 1071 “goes far beyond the scope of the CFPB’s rulemaking authority in a fruitless attempt to capture the complexity of small business lending.”
Expanding to 81 fields from the original 13 will bring greater costs than benefits from the data collected.
To summarize the Motion, the Final Rule:
- Exceeds the CFPB’s statutory authority
- Fails to consider significant aspects of the problem
- Accounts for the costs and benefits of the rule arbitrarily and should be set aside.
Since there is currently no decision on this second case, we must move forward and plan for 1071 in its current form.
To that end, TCA is rolling out a series of 15 articles – TCA’s 1071 Preparation Guide – to help you understand your obligations and ensure you’re ready to meet the new requirements and deadlines.
We’ll also provide useful tools, such as checklists, workflow suggestions, and so forth, to help you get started.
Call us at 800-934-7347 or send an email to [email protected] to discuss how we can help.
TCA – A Better Way!
