MBA’s President and CEO Bob Broeksmit, CMB, released the following statement regarding the Consumer Financial Protection Bureau’s (Bureau) small business loan final rule that implements Section 1071 of the Dodd-Frank Act:
“While we are pleased that loans reportable under the Home Mortgage Disclosure Act will not need to be reported under the Bureau’s final rule, it is disappointing that this exclusion is not applied to all investment property lending. MBA agrees with federal regulatory agencies’ long-held view that lending to finance income-producing properties is not small business lending.
“The longer implementation timelines and higher loan reporting thresholds are appreciated, but we are concerned that the final rule imposes burdensome and costly data collection and reporting requirements on some commercial real estate lenders. Commercial real estate markets are already facing headwinds from financial market volatility, economic uncertainty, and higher interest rates. Preparing for new compliance obligations only adds to these challenges and will likely raise costs for borrowers.
“MBA will work with its members that are covered under the final rule and will provide ongoing feedback and recommendations to the Bureau ahead of the effective dates.”
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