As a part of the large and cumbersome Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”), Section 1071 was enacted to amend the Equal Credit Opportunity Act (15 U.S.C. 1691 et. seq.) to impose data collecting requirements on financial institutions. Pursuant to Section 1071 (the “Rule”), financial institutions are required to compile, maintain, and submit to the Consumer Financial Protection Bureau (“CFPB”) certain information concerning credit applications by women-owned, minority-owned, and small businesses. The Rule was not slated to go into effect until the CFPB issues necessary implementing regulations. Unfortunately, nearly 8.5 years later, there is still no guidance. Consumers and financial institutions alike are at a sort of standstill, unclear on the contours of its reporting requirements. In November of 2019, the CFPB published a letter to financial institutions promising to develop rules “expeditiously;” the CFPB later hosted an information-gathering symposium on the Rule, yet there is still no clear guidance.
President Trump has made his opinion of federal regulations known from the very start of his presidency. He clearly believes that federal regulations, especially those established by the Environmental Protection Agency (“EPA”), inhibit economic growth and unduly burden American businesses. However, it is equally unclear how his deregulatory efforts have benefitted anyone other than corporate America. Rather than utilizing his considerable influence to protect the health of the American people, President Trump and his administration have been hard at work unraveling such protections, much to the frustration of the states.
As President Donald Trump continues to deliver on his promise to deregulate, the Department of Housing and Urban Development (HUD) has been instrumental in reversing Obama-era regulations. President Trump, who made his fortune in real estate development, has a checkered past when it comes to fair housing and discrimination. Now his administration is working to cut funding to HUD and unwind many fair housing and discrimination rules. Administration proponents say this is a necessary step to fix a broken and corrupt bureaucracy, while many advocates have expressed concern over the government scaling back enforcement of fair housing laws. Any reform effort should seek to balance concerns about bureaucracy with the vital missions of fair discrimination-free housing, inclusive communities, and civil rights.
The Trump administration is delivering on its promise to deregulate America. Since taking office, numerous regulations spanning everything from energy to health care have been repealed or weakened. The financial services industry is not immune to the deregulation movement. The Trump administration is acting through appointments, executive agencies, and legislation to deregulate the financial services industry. Proponents of deregulation claim the movement is needed after Dodd-Frank and strict post-financial crisis regulation. However, in deregulating financial services, the Trump Administration—and compliance professionals—should proceed cautiously.
As summer turns to fall, leaves begin to change, and farmers in the Midwest start the process of harvesting their crops. Farmers are hard-working, environmentally conscious, planners, who consider how their planting, fertilizer, and equipment effect the environment that their livelihood depends on. They do all of this while still attempting to remain compliant with all applicable state and federal laws. Currently, farmers are worried about changes being made to the Clean Water Act and if they are going to incur large economic damages because of it.