Senate votes to overturn CFPB small business rule as Biden threatens veto

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Supporters of the rule say it will help ensure that lenders distribute loans equitably to underrepresented borrowers.

Sen. John Kennedy sponsored the bill to invalidate the measure under the Congressional Review Act. | Francis Chung/POLITICOThe Senate on Wednesday voted to overturn a Consumer Financial Protection Bureau rule requiring lenders to report demographic data on small-business loan recipients, defying a White House veto threat.to invalidate the measure under the Congressional Review Act, called the regulation “intrusive” in a floor speech before the Senate voted 53-44 to scrap it.

The rule would “give the public key data on this market to ensure that banks and nonbanks are serving small businesses fairly,” CFPB Director Rohit Chopra said at the time.The 1071 rule “will provide small business owners, lenders, and the public with critical information about the $1.7 trillion small business financing market,” the White House said in a statement of administration policy.

Kennedy said the agency had “totally perverted” what Congress intended when it passed Section 1071 of Dodd-Frank in 2010.

 

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