The Consumer Financial Protection Bureau (CFPB) published its small business lending data collection proposal in the Federal Register. Comments are due Jan. 6, 2022.
Section 1071 of the Dodd-Frank Act amends the Equal Credit Opportunity Act (ECOA) to require financial institutions collect and report to the CFPB certain data regarding certain business credit applications.
The proposal covers requirements for covered financial institutions to collect and report to the Bureau data on applications for credit for small businesses, including those that are owned by women or minorities.
CUNA supports the goals of Section 1071 to ensure fair and equitable financial opportunities, but also has concerns regarding potential for unintended consequences and substantial compliance costs associated with the finalization of a complex, overly-broad data collection.