In a new letter to CFPB Director Rohit Chopra, the Texas Bankers Association (TBA) and American Bankers Association (ABA) called on the Consumer Financial Protection Bureau to extend U.S. District Court Judge Randy Crane’s recent court order pausing the CFPB’s 1071 Final Rule implementation to all FDIC-insured banks.
“As you know, we requested relief for every entity subject to the Final Rule, but the Court limited that relief to members of our associations (including co-plaintiff Rio Bank),” TBA and ABA wrote in their letter to Director Chopra. “While most FDIC-insured banks fall within our membership, there are some that do not. We recognize the Bureau’s desire to continue pressing forward with certain covered institutions and so are only asking for your consideration of extending the stay to the banking industry. We believe this would simplify things for both your agency and the regulated community.”
The letter echoes the associations’ earlier motion before the court seeking to prohibit the CFPB from implementing and enforcing the 1071 Final Rule on all financial institutions covered by the rule until the U.S. Supreme Court rules in a separate case challenging the constitutionality of the CFPB’s funding (CFPB v. Community Financial Services Association of America, Limited).
“With oral argument in Community Financial in 60 days and a decision likely within six to eight months, we believe the CFPB extending the relief already provided to numerous banks nationwide would be prudent and ameliorate confusion,” the associations said.
About Texas Bankers Association
Founded in 1885, the Texas Bankers Association is the largest state-based banking association in the US. TBA advocates for 400 of its member banks in Austin and Washington; trains more than 10,000 bankers annually; provides nationally recognized community bank services; and invests in Texas communities through financial literacy, scholarships, and charitable activities.
About the American Bankers Association
The American Bankers Association is the voice of the nation’s $23.7 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2.1 million people, safeguard $18.7 trillion in deposits and extend $12.2 trillion in loans.