The rule at issue implements Section 1071 of the Dodd-Frank Act and was published as a final regulation under the Equal Credit Opportunity Act at 88 Fed. Reg. 35,150 on May 31, 2023. It requires covered financial institutions to collect and report data on credit applications from small businesses.
The Bureau said it "will not prioritize enforcement or supervision actions with regard to entities that are currently outside the stay imposed under Texas Bankers Association v. CFPB, No. 24-40705 (CA5)."
The agency said it would instead keep its resources "focused on pressing threats to consumers, particularly servicemen and veterans." It described the shift as being "in the interest of focusing resources on supporting hard-working American taxpayers, servicemen, veterans, and small businesses."
The Bureau also tied the decision to the split coverage created by the stay. "Even absent resource constraints, the Bureau would deprioritize enforcement of this rule because of the unfairness of enforcing it against entities not protected by the court's stay but similarly situated to parties that are protected by the stay," the announcement said.
The CFPB said it "looks forward to resolving the status of this regulation and ensuring fair, consistent treatment for all entities impacted by the regulation." It did not specify how or when that resolution would occur.