What is Section 1071 of the Dodd-Frank Act?
Section 1071 of the Dodd-Frank Act amended the Equal Credit Opportunity Act (ECOA) to require financial institutions to compile, maintain, and submit to the Bureau certain data on applications for credit for women-owned, minority-owned, and small businesses.
Congress enacted Section 1071 for the purpose of:
- Facilitating enforcement of fair lending laws
- Enabling communities, governmental entities, and creditors to identify business and community development needs and opportunities for women-owned, minority-owned, and small businesses
What is the Current Status of the Requirement?
Under the process established by Congress in the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA), the CFPB was required to consult with representatives of small entities likely to be affected by the proposed to obtain feedback on the likely impacts of the rules on small entities.