CFPB's Section 1071 Proposed Rule to Expand Data Collection and Reporting Efforts in the Small Business Lending Market

After 10 years of delay, the Consumer Financial Protection Bureau (CFPB) finally released its proposed rule implementing Section 1071 of the Dodd-Frank Act on September 1, 2021. The proposal would impose significant new data collection and reporting requirements, similar to the Home Mortgage Disclosure Act, upon lenders in connection with credit applications made by women- or minority-owned businesses as well as small businesses. These data collection and reporting requirements will impose significant regulatory and operational challenges for lenders, and, once implemented, will likely result in more fair lending enforcement actions.
Please join us for a discussion of the following topics:

• A brief history of Section 1071, the reasons for the CFPB’s delay in implementation, and the lawsuit that prompted the CFPB to act under a court-imposed deadline
• An overview of the proposed rule and particular areas of concern
• How the data collection requirements differ from what was outlined in the 2020 SBREFA proposal
• Likely timeline for issuance of a final rule and compliance deadlines
• Outlook for CFPB supervision and enforcement
• Fair lending considerations and risk mitigation recommendations