Access Our Bankers Library for Small Business Lending Data Collection (1071) Training
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Small Business Lending Data Collection (Regulation B)
On March 30, 2023, the Consumer Financial Protection Bureau (CFPB) issued a Final Rule to amend Regulation B. Specifically, it is intended to bring Section 1071 of The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) to fruition. The Dodd-Frank Act was passed way back in 2010 and it called for changes to the Equal Credit Opportunity Act (ECOA) with respect to collecting and reporting certain data on small business credit applications, including those that are minority-owned and women-owned. It also calls for safeguarding the data, shielding it from certain persons within the loan process, recordkeeping requirements, and more.
The intent of these changes is to identify and address fair lending concerns as well as community development needs and opportunities.
After a few challenges and delays, including a ruling by the Supreme Court, the mandatory compliance dates have been extended as follows:
| Compliance Tier | Original Compliance Date | New Compliance Date | First Filing Deadline |
| Highest Volume Lenders | October 1, 2024 | July 18, 2025 | June 1, 2026 |
| Moderate Volume Lenders | April 1, 2025 | January 16, 2026 | June 1, 2027 |
| Smallest Volume Lenders | January 1, 2026 | October 18, 2026 | June 1, 2027 |
It is imperative that compliance personnel and management understand the potential ramifications for their institution’s current policies, procedures, and processes going forward.
Regulatory Impact
Many financial institutions are already subject to other regulations that require them to collect and/or report certain loan and/or loan applicant data. Some include the Equal Credit Opportunity Act, Home Mortgage Disclosure Act, Community Reinvestment Act, Beneficial Ownership rules, etc. While that may help with a better understanding of data collection/reporting as a whole, the data that will need to be collected/reported under Section 1071 is different than other regulatory requirements and could likely to cause even more confusion.
Section 1071 Training Resources
We are in the business of educating bankers and quality training is our top priority. Our goal is to see you and your financial institution succeed! You can be assured that everything we do, from in-person training and webinars to our magazine and blog, is done in our signature, plain English style.
There is no one-size-fits-all approach to a financial institution’s training needs. That said we do recommend some variety in the methods you choose. Variety will not only help your budget but will also give you different viewpoints. Maybe you attend an in-person conference every few years and then fill in any gaps with webinars. Maybe you follow our blog to monitor major regulatory developments and look to our magazine for more in-depth analysis. The point is, you can tailor training to your wants and needs.
Thought Leadership & Implementation Group
The Section 1071 requirements are intended to, in part, shine a light on commercial loans and fair lending. The implementation process and mandatory compliance date may seem like a long way out, but in “compliance time,” it will seem much shorter than it appears and will come faster than you think!
What steps have you already taken to prepare? What are your next steps?
We’ve been down this road before and want to help you eliminate those uneasy feelings. We have something special just for Section 1071! Our Thought Leadership & Implementation Group will help guide you through the 1071 implementation and planning process. The concept is simple; we want to partner with you and your peers through a thought leadership, implementation, and planning membership group and turn the complexities of the Section1071 requirements into plain English!
In-Person Training
In-person Section 1071 training is as good as it gets. The benefits of face-to-face training vs. other mediums are immeasurable. Face-to-face communication not only allows you to “hear” the material but also “see” it and “feel” it. The personal interaction with the presenters and other attendees/co-workers will stay with you long after the training ends. Another perk of in-person/on-site training is that it can be customized to your specific wants and needs.
Webinars
If you prefer a little more flexibility as to when and where you receive training, our webinars are a great solution. We have webinars devoted to specific Section 1071 topics that you can choose from. The shortened format of a webinar (1-2 hours) really allows us to go in-depth with laser-like focus on specific areas of the Section 1071 requirements that will get you on the right track.
Virtual Conferences
Our Virtual Conferences are a great way to stay current with regulatory compliance issues. We offer a two-day Virtual Lending Compliance Conference.
Consulting
Find out how we can best serve you and your team. It may be the ability to call our experts when your team has a question or to bring our team in for a review. Find your consulting options here.
Reviews
Banker’s Compliance Consulting offers many options for risk-based compliance reviews to assess the effectiveness of your compliance policies, procedures, and processes.
Banking on BBC Magazine
Our Banking on BCC Magazine is a must for any compliance professional. This monthly, subscription-based, electronic magazine is full of valuable compliance information each month. We cover a variety of lending, deposit and BSA compliance topics, from recent developments to highlighting areas that have maybe fallen off your radar. Each month, in addition to great articles, we feature a Q & A Corner, highlighting a few compliance questions we’ve recently received. Regular features such as Field Notes, BSA Bits & Pieces, Management Minute and Training Spotlight are included.
Monthly Connection
The Monthly Connection is yet another way to stay up-to-date on issues related to Section 1071 and interact with your peers in the compliance industry. While we talk about a wide variety of topics each month, there is ample time to ask questions of our experts and your peers. We like to say, “Compliance is not competitive” and our Monthly Connection is a way for compliance professionals to help other compliance professionals.
Blogs
Our blog is a great way to say up to date with regulatory developments and topics. If the regulators issue a Final Rule affecting Section 1071, our blog is the first place you will hear from us. The blog acts as a great supplement to more formal methods of training and better yet, it’s FREE!
Free Section 1071 Resources
Our free resources are a treasure trove of helpful information. We have many free tools and resources designed with the intent of helping you comply with the Section 1071 requirements.
Some of the latest tools include: An action plan, Application Coverage Flow Chart, Denial Reasons Comparison Chart, and more. Check them out here - make sure to type "1071" in the search bar to find all your 1071 tools.
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External Section 1071 Resources