House Advances 1071 Repeal as CFPB Signals Possible Rewrite of Data Rule

The House Financial Services Committee has advanced H.R. 976, the 1071 Repeal to Protect Small Business Lending Act, on a party-line vote of 27-22. Sponsored by Rep. Roger Williams (R-TX), the bill would repeal Section 1071 of the Dodd-Frank Act, which requires lenders to collect and report demographic data on small business loan applicants.

Section 1071 was finalized by the Consumer Financial Protection Bureau in March 2023, with implementation set to begin this July after previous delays due to legal challenges.

This week, according to Bloomberg Law, the CFPB informed a federal court that it is working on a new proposal for the rule under the direction of Acting Director Russell Vought. The agency said a revised rulemaking could potentially resolve industry lawsuits challenging the Biden-era regulation. In a court filing, the CFPB requested that the litigation be put on hold, noting that the anticipated rulemaking “may moot or otherwise resolve this litigation.”

It remains unclear whether the CFPB will substantially modify or rescind the rule, but the agency could exempt categories of lenders or scale back data requirements—steps that would significantly change its scope.

We will continue to monitor both the legislative repeal effort and the CFPB’s regulatory response.