After a much-anticipated wait, on March 30, 2023, the Consumer Financial Protection Bureau (CFPB) issued its final rule on Section 1071 of the Dodd-Frank Wall Street Reform and Protection Act (Dodd-Frank Act) amending the Equal Credit Opportunity Act (ECOA) by addressing small business lending data collection and reporting requirements.
This final rule covered in an 888-page document, will require covered financial institutions and voluntary reporters to maintain, report, and publicly disclose information about small business lending; including new data points for the capture of small businesses that are owned by women, minorities and LGBTQI. The data is intended to help show whether lenders are serving the credit needs of small businesses in their communities, by increasing transparency in the lending marketplace. Although the rule is under the Fair Lending umbrella, it will impact the Community Reinvestment Act (CRA); in particular, with the new definition of a small business loan.
There is no doubt that this new rule will present significant operational, interpretive and resource challenges for banks. Therefore, let the South Florida Compliance Association (SFCA) be your educational platform to assist you in understanding the requirements of this new rule. With tiered implementation compliance reporting mandates, you can’t be left behind…. So, join us on June 6, 2023, as we spend a day diving through Section 1071 of the Dodd Frank Act with well-known regulatory dynamic speaker, Ms. Patti Joyner, President of Financial Solutions.
Some of the topics covered will include:
- Institutional and Transactional Coverage
- Effective Date/ Compliance Date Tiers/ Transactional Provisions
- Key Definitions
- Covered Credit Transactions
- Reportable Data Fields
- Requirements to Collect and Report Data
- Provisions involving Privacy and Availability of Data
- Record keeping
- Safe Harbor