A joint resolution providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to "Bulletin 2012-04: Lending discrimination (April 18, 2012)".
- Bill Number
- S.J.Res. 157
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Finance and Financial Sector
- Status
- Introduced
- Latest Action
- 2026-03-26: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-04-01T16:00:56Z
AI-Generated Summary
Purpose
This joint resolution (S.J. Res. 157) uses the Congressional Review Act (a law allowing Congress to overturn certain federal agency rules) to block a Bureau of Consumer Financial Protection (CFPB) action. Specifically, it disapproves the CFPB's rule that withdrew its 2012 guidance bulletin on lending discrimination (Bulletin 2012-04, issued April 18, 2012). By doing so, it keeps the 2012 bulletin in effect.
Key Provisions
- Disapproval of CFPB Rule: Congress explicitly disapproves the CFPB's withdrawal rule, published in the Federal Register on May 12, 2025 (90 Fed. Reg. 20084).
- No Force or Effect: The withdrawal rule is nullified and cannot be implemented.
- Introduced by Sen. Welch on March 26, 2026, and referred to the Senate Committee on Banking, Housing, and Urban Affairs.
Significant Changes to Existing Law
- No new laws are created; it reverses a specific agency action under the Congressional Review Act.
- Restores the status quo by reinstating Bulletin 2012-04, which provided guidance to banks and lenders on avoiding discriminatory lending practices (e.g., using non-traditional credit data in a way that might unfairly exclude protected groups under fair lending laws like the Equal Credit Opportunity Act).
Potential Impacts
- Government Agencies: Limits CFPB's ability to rescind prior guidance, potentially requiring it to continue enforcing or referencing the 2012 bulletin in supervision and enforcement.
- Citizens: May enhance protections against lending discrimination by maintaining CFPB guidance that helps ensure fair access to credit for underserved borrowers.
- No direct international relations impact.
Main Stakeholders Affected
- Financial Institutions: Banks and lenders must continue complying with the reinstated 2012 bulletin on fair lending practices.
- Consumers: Borrowers, especially minorities or those with non-traditional credit histories, who benefit from anti-discrimination guidance.
- CFPB: Faces congressional override of its rulemaking authority on this issue.
- Congress: Asserts oversight over independent agencies like the CFPB.
Notable Legal, Constitutional, or Political Implications
- Legal: Demonstrates use of the Congressional Review Act to review agency withdrawals of prior guidance, treating it as a "rule" subject to congressional veto (a rare application, as CRA typically targets new rules).
- Constitutional: Reinforces Congress's oversight role over executive agencies, aligning with separation of powers principles.
- Political: Highlights partisan or ideological divides on consumer protection and regulatory rollback, as it blocks a deregulatory move by the CFPB.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-03-26: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-03-26: Introduced in Senate
Bill Versions
- Providing for congressional disapproval under chapter 8 of title 5, United States Code, of the rule submitted by the Bureau of Consumer Financial Protection relating to the withdrawal of the rule relating to Bulletin 2012-04: Lending discrimination (April 18, 2012). — issued 2026-03-26 — PDF (2 pages)