Provide feedback on re-proposed 1071 rule

Credit union stakeholders are encouraged to provide feedback on the CFPB’s proposal on certain small business lending data collection provisions of Section 1071 of the Dodd-Frank Act. The proposal is highlighted in America’s Credit Unions’ latest Regulatory Comment alert and is a re-proposal of a final rule issued in 2023.  

America’s Credit Unions has vocally opposed the bureau’s 2023 rule, as it would require credit unions to overhaul their application systems, retrain staff, and ensure strict firewalls between loan officers and the new data—creating lending challenges for both lenders and small businesses.   

The proposed rule would raise the origination threshold for covered financial institutions from 100 covered credit transactions to 1,000 over two consecutive years. It would also lower the gross annual revenue threshold defining a small business from $5 million to $1 million. 

In addition, the proposal is seeking to limit data collection to the statutory 1071 data points and remove many discretionary data points, reducing complexity and focusing on essential data to ease compliance, as well as eliminate the previous system of tiered compliance dates in favor of a single, uniform compliance date. The compliance date for all covered financial institutions would be January 1, 2028.

The Regulatory Comment alert breaks down the proposal and provides questions to consider when providing feedback. Comments are due to America’s Credit Unions by Dec. 8 and to the CFPB by Dec. 15. 

View the Regulatory Comment