FEDERAL GOVERNMENT RELATIONS
CFPB says it will rework 1033 rule
The Consumer Financial Protection Bureau requested a stay in a lawsuit challenging the 1033 rule on consumer data security and privacy and said it plans to craft a new rule soon. The CFPB filed a stay with the U.S. District Court of Eastern Kentucky and said it “has now decided to initiate a new rulemaking to reconsider the Rule with a view to substantially revising it.”
The CFPB in June asked a federal court to vacate its 1033 rule, saying the rule is unlawful because it exceeds the bureau’s statutory authority and is arbitrary and capricious. The CFPB’s rule implements Section 1033 of the Dodd-Frank Act, which requires covered financial institutions to make available to consumers certain data relating to consumers’ transactions and accounts upon request.
Bill would create regulatory labs for financial institutions to test AI
A bipartisan group of senators and House lawmakers introduced a bill to create regulatory “sandboxes” for artificial intelligence test projects at financial regulatory agencies.
Senate Banking Committee advances bill to accelerate housing construction
The Senate Banking Committee unanimously voted to advance bipartisan legislation to boost housing supply.
State bankers associations seek federal study on credit unions’ tax status
The Treasury Department should conduct a study of the $2.37 trillion credit union system to determine whether its current activities align with its longstanding tax-exempt status, 52 state bankers associations said in a joint letter to the department.
FHFA proposes to repeal fair lending rule
The Federal Housing Finance Agency is proposing to repeal a 2024 final rule that codified many of its existing practices and programs regarding fair housing and fair lending oversight of its regulated entities: Fannie Mae, Freddie Mac and the Federal Home Loan Banks.