CFPB Small Business Loan Rule Partially Blocked (2)

A federal judge in Texas blocked the Consumer Financial Protection Bureau from enforcing a new rule requiring lenders to collect demographic data from small-business borrowers while the constitutionality of the agency’s funding mechanism remains in question.

Judge Randy Crane of the US District Court for the Southern District of Texas placed an injunction Monday barring the CFPB from requiring Rio Bank of McAllen, Texas, and members of the Texas Bankers Association and American Bankers Association (ABA) to comply with the small business lending rule until the US Supreme Court rules on the CFPB’s funding.

The high court in October is ...