The CFPB has released a proposal that would significantly narrow the scope of lenders and transactions required to report small business lending data. The plan would redefine a covered small business as one with $1 million or less in annual revenue (down from $5 million), exclude certain categories of lenders, and raise the coverage threshold from 100 to 1,000 originations in each of the prior two years.

The Small Business Lending Rule, issued under the Equal Credit Opportunity Act, requires financial institutions to compile, maintain, and submit to the CFPB certain demographic data on applications for credit for women-owned, minority-owned, and small businesses. The rule aimed to facilitate the enforcement of fair lending laws, improve transparency in the small business lending market, and gain insight into the credit needs of small businesses.

The Equal Credit Opportunity Act was enacted to combat widespread discrimination in lending against women and racial minorities, addressing both intentional discrimination and practices that have discriminatory effects.

In an ongoing federal court case brought by the National Treasury Employees Union against Russ Vought, the CFPB informed the court it cannot lawfully draw funds from the Federal Reserve System due to a novel and unsupported reading of Dodd-Frank. The Bureau expects to operate through at least December 31.

OMB Director Vought requested an opinion from the White House Office of Legal Counsel to establish a new policy that the CFPB can only draw funds from the Federal Reserve System when the Fed is profitable. This new and unsupported reading of Dodd-Frank is a backdoor way to try and defund the CFPB’s work.

The CFPB lifted a consent order against Transunion that had required the company to correct failures in processing consumer credit freezes and locks.

The Federal Reserve finalized revisions to its supervisory ratings framework for the largest banks that greatly soften the rating categories and limit the actions of supervisors.

The SEC extended the deadline by one year to implement rules that improve the prices investors receive on their trades and lower their trading costs. Investors will get worse prices and face higher trading costs.