This story appeared in Bank Digest.
On Monday, May 21, 2018, President Donald J. Trump signed into law S.J. Res. 57, which used Congressional Review Act authority to nullify the Consumer Financial Protection Bureau's 2013 bulletin regulating indirect auto lenders for compliance with the Equal Credit Opportunity Act. The Senate had approved the resolution by a 51-47 vote on April 18, and the House of Representatives followed suit with a vote of 234-175 on May 8.
The CFPB issued the guidance to ensure compliance with the ECOA and to institute more rigorous oversight of the automobile financing process to eliminate discriminatory practices. But Section 1029 of the Dodd-Frank Act forbids the Bureau from regulating auto dealers, and the bulletin was issued without allowing public comment. In addition, some auto dealers feel it threatens their ability to negotiate the terms of loans with their customers and that the guidance has been used to sanction auto financing companies.
A CFPB press release noted, "Today's action also clarifies that a number of Bureau guidance documents may be considered rules for purposes of the CRA, and therefore the Bureau must submit them for review by Congress."