In September 2023, a federal judge granted an injunction delaying the compliance dates for the CPFB Section 1071 final rule while the Supreme Court hears a separate case – involving the same parties - weighing the constitutionality of the CFPB’s funding structure.
With the Supreme Court’s final decision in the CFPB constitutionality case not likely until the first half of 2024, the CFPB is also now expected to be required to recalculate new Section 1071 compliance dates for those institutions that opt to delay their implementation -- to allow for the same amount of time to comply in recognition of the order.
In late December 2023, President Biden vetoed a bipartisan resolution to overturn the Section 1071 rule. The resolution is back before Congress where it faces the unlikely possibility of garnering a two-thirds majority in each chamber to overturn the President’s veto.