The CFPB has released an update to the Filing Instructions Guide for Small Business Lending Data. The Guide is intended to serve as a set of resources for entities who will be required to file small business lending data with the CFPB in 2025 covering the period from October 1, 2024 to December 31, 2024.  The CFPB’s final rule on small business lending data (Rule) requires a financial institution to begin collecting data and otherwise complying with the final rule on October 1, 2024 if it originated at least 2,500 covered originations in both 2022 and 2023.

The updates include:

• Reordering certain demographic information codes to better correlate with Home Mortgage Disclosure Act data, per request from industry,
• Minor wording clarifications to the pricing information data point, and
• Minor administrative updates to the validation IDs.

The changes were also incorporated into the Small Business Lending Rule Data Points Chart.

More information about the updates to the Filing Instructions Guide can be found on the Small Business Lending Data Updates page on the CFPB’s website.

The Rule is the subject of ongoing litigation in federal district courts in Texas and Kentucky which we are following closely.  On July 31, the Texas federal court entered an order that preliminarily enjoins the CFPB from implementing and enforcing the Rule “pending the Supreme Court’s reversal of [Community Financial Services Association of America Ltd. v. CFPB], a trial on the merits of this action, or until further order of this Court.”  The order also stays the deadlines for compliance with the Rule’s requirements pending the Supreme Court’s decision in CFSA and extends the deadlines for compliance in the event of a reversal in CFSA.  However, the relief granted by the court is limited to the plaintiffs in the lawsuit, Texas Bankers Association (TBA), the American Bankers Association (ABA), and Rio Bank, McAllen, Texas, and members of TBA or ABA.

The Texas federal court has allowed trade associations representing community banks and credit unions to intervene in the lawsuit.  The associations have asked the court to extend the preliminary relief on a nationwide basis or, in the alternative, extend the relief to the intervenors and their members.  In the separate lawsuit filed in a Kentucky federal court by a Kentucky banking trade group and several Kentucky banks, the plaintiffs also intend to seek preliminary injunctive relief from the Rule.

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