ECOA Small Business Lending Data Collection

Date:

Sep 5, 2024

ECOA’s Section 1071 Rule has had an interesting path. Between initial delays in actually getting a Final Rule and then lawsuits regarding the constitutionality of the CFPB, it was kind of in a holding pattern. However, on May 16, 2024, the Supreme Court ruled the CFPB’s funding structure is constitutional, which officially kicked Section 1071 back into the limelight. As a result, the CFPB also updated the mandatory compliance dates. Section 1071 of The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) amends 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 that data, shielding it from certain persons within your loan process, recordkeeping requirements, and more. Preparing to comply with this Rule will require a lot of planning, training, and procedural updates within your institution. This session will bring you plain English solutions!