On April 3, 2025, the ABA Banking Journal reported that the CFPB said in a court filing that its leadership has directed staff to initiate new rulemaking to implement Section 1071 of the Dodd-Frank Act and plans to soon release a proposal to possibly replace or change its current rule. The CFPB filed to the District Court for the Southern District of Florida an unopposed motion to stay the section 1071 rule and hold proceedings in abeyance.
As stated in the CFPB’s motion:
“New leadership has been assessing the final rule and the issues that this case presents to determine the CFPB’s position. CFPB’s new leadership has directed staff to initiate a new Section 1071 rulemaking. The CFPB anticipates issuing a Notice of Proposed Rulemaking as expeditiously as reasonably possible. Because the anticipated rulemaking process may moot or otherwise resolve this litigation, holding this matter in abeyance would conserve the court’s resources.”
The CFPB did not specify when the proposed rulemaking would be released or its contents. However, the bureau proposed submitting reports to the court every 90 days during the rulemaking process, with the parties in the case conferring within 30 days of a new final rule to decide whether they want to proceed with the lawsuit.
Read the ABA Banking Journal’s report here.
The CFPB’s motion can be found here.