Credit union trade organizations are pressing the ConsumerFinancial Protection Bureau to limit the scope of data they provideon business loan applications used by regulators to determinewhether lenders are discriminating against women andminorities.

CUNA and NAFCU are responding to the bureau's request Wednesdayfor comments over the next 60 days before it drafts regulations tocomply with the Dodd-Frank Act's Section 1071 provisions tocreate reporting frameworks to monitor small business lending towomen and minorities.

“NAFCU acknowledges that taken on its own, Section 1071 is awell-intentioned provision,” Andrew Morris, NAFCU's regulatoryaffairs counsel, wrote in a three-page letter to the bureau.However, he said the law's implementation could raise lending costsand discourage credit unions from making the very loans the bureauwas trying to foster.

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Jim DuPlessis

A journalist for decades.