Still No Set Date for the CFPB’s Section 1071 Regulation, But Compliance Challenges Loom
May 2, 2016
Section 1071, which is part of the Dodd-Frank Act passed in 2010, applies the HMDA regime to loans made to women-owned businesses, minority-owned businesses, and small businesses. However, Section 1071 is not self-implementing. It does not go into effect until the CFPB issues a final regulation, and the agency appears to be dragging its feet. Short of the Dodd-Frank Act (or Section 1071) being repealed, the regulation will be written, and it will be a significant challenge to apply HMDA-like data collection, maintenance, and reporting requirements to business lending. To help banks plan ahead, CBA has prepared a summary and analysis of Section 1071, which can be found here.