TOPIC: Dodd Frank

CFPB Moving Forward with Section 1071 Rulemaking: 5 Things Your FI Needs to Know to Prepare

Good day, Bankers! Since the passage of the Dodd-Frank Act over 11 years ago, compliance officers have been wondering about Section 1071, which amended the Equal Credit Opportunity Act (ECOA) to require financial institutions to compile, maintain, and submit certain data on applications for credit for women-owned, minority-owned, and small businesses.

Envisioning HMDA for small business lending, compliance officers wanted to know the Who and What (data points), the How (collection efforts), and the When (implementation). As the years have passed without any rulemaking, the When has seemed further and further away. But, as of September 1, we finally have a solid idea about When. That’s the day the Consumer Financial Protection Bureau (CFPB) issued its proposal—all 918 pages of it!

Check out these insights and action items re: the CFPB's recent HMDA for Small Business proposal.

This article was originally posted on the Ncontracts blog.

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