For Immediate Release
Press Contact
Jacob Weinberg, Democracy Forward, jweinberg@democracyforward.org
Brian Maxey, California Reinvestment Coalition, (510) 813-7552, bmaxey@calreinvest.org
Sharon Garcia, National Association for Latino Community Asset Builders, sgarcia@nalcab.org
Section 1071 of Dodd-Frank Rulemaking Will Bolster Protections against Lending Discrimination; CFPB Previously Settled Advocates’ Lawsuit Over Trump Admin’s Unlawful Delay of Rulemaking
Washington, D.C. – Yesterday, as stipulated in the settlement agreement for the Trump-era lawsuit California Reinvestment Coalition v. Consumer Financial Protection Bureau (CFPB), the CFPB informed the court it has agreed to a court-ordered deadline of March 2023 for an issuance of a final rule implementing Section 1071 of the Dodd-Frank Act. Section 1071 requires the CFPB to collect and disclose data on lending to small businesses and women- and minority-owned businesses to facilitate enforcement of fair lending laws to curb lending discrimination. The lawsuit was brought in 2019 by Democracy Forward on behalf of the California Reinvestment Coalition (CRC), the National Association for Latino Community Asset Builders (NALCAB), Deborah Lynn Field, and Reshonda Young. The groups filed suit when the Trump administration defied the Dodd-Frank Act by failing to collect and disclose data on lending to women-owned, minority-owned, and small- businesses.
Yesterday’s announcement is another victory in a years-long legal challenge seeking to protect women-owned, minority-owned, and small businesses against discriminatory lending.
In response, the groups issued the following statement:
“The Trump administration broke the law and turned its back on women, minority, and small-business owners when it refused to implement Section 1071 . We are pleased that the CFPB’s current leadership, per the terms of our settlement, has affirmed its commitment to advancing this statutorily required, critical and overdue rulemaking.
Section 1071 is critical to advancing gender and racial equity in lending. The full implementation of Section 1071 is integral to increasing transparency, fostering enforcement of fair lending laws, and providing the data needed to increase opportunities for women-owned, minority-owned, and small businesses. We will remain vigilant to ensure this final rule is issued and implemented.”
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Democracy Forward Foundation (“Democracy Forward”) is a nonprofit legal organization founded in 2017 that litigates cases involving government action on behalf of organizations, individuals, and municipalities. The organization has taken 650 legal actions and achieved victories supporting democracy and improving the lives and wellbeing of people and communities. Democracy Forward Foundation is a 501(c)(3) non-profit organization.
The California Reinvestment Coalition (CRC) is the largest statewide community reinvestment coalition in the country, with over 300 member organizations across California that provide services to tens of thousands of low-income residents. CRC members include affordable housing developers, community development financial institutions, housing counseling agencies, small business technical assistance providers, legal services agencies, and community-based organizations.
The National Association for Latino Community Asset Builders (NALCAB) is the hub of a national network of more than 170 member organizations that are anchor institutions in geographically and ethnically diverse Latino communities in 40 states, Washington DC and Puerto Rico. NALCAB supports its member institutions through funding, training, research and advocacy, enabling them to invest in their communities by building affordable housing, ensuring equitable neighborhood development, supporting small business growth, and providing financial counseling on issues including credit building and homeownership. As a grantmaker and US Treasury certified CDFI lender with offices in San Antonio and Washington DC, the NALCAB Network serves hundreds of thousands of low- and moderate-income people, advancing economic equity and inclusivity.