On March 30, 2023, the Consumer Financial Protection Bureau (“CFPB” or “Bureau”) issued a final rule amending its regulations that implement the Equal Credit Opportunity Act (“ECOA”) pursuant to Section 1071 of the Dodd-Frank Wall Street Reform and Protection Act (“Dodd-Frank”).[1] Section 1071 requires covered financial institutions to collect and report data on loan applications for small businesses, including those that are owned by women or minorities.
To facilitate information exchange and further knowledge sharing, Wolters Kluwer welcomed the CFPB to a well-attended webinar in late April to discuss operationalizing the new 1071 rule. As the industry continues to read and digest the 888-page rule, Wolters Kluwer sought a dialogue with the CFPB that did more than just summarize 1071, but rather fleshed out ideas to ensure lender compliance well before the earliest reporting date. Attendees heard from CFPB officials on myriad topics, including an overview of the rule, the data collection requirements, and the tiered compliance schedule. The event featured a facilitated question and answer segment addressing attendees’ questions on better understanding the new requirements and on next steps to begin preparing to comply with this new rule.