On 9/15/20, the Consumer Financial Protection Bureau (CFPB) issued an “Outline of Proposals Under Consideration and Alternatives Considered for Section 1071 of the Dodd-Frank Act.” This release explains how the CFPB is currently working to implement Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act that will create a requirement for financial institutions to compile, maintain, and report certain data on applications for credit from women-owned, minority-owned, and small businesses.
This new release by the CFPB discusses a number of things, including:
The relevant law;
The regulatory process;
The rule proposals the CFPB is considering; and
An economic analysis of the potential impacts of the proposals on directly affected small businesses.
One item of note is that the CFPB is considering to exempt certain financial institutions from any collection and reporting requirements based on either or both a size-based and/or activity-based threshold.
An executive summary of the proposal can be found here.
The entire outline can be found here.