Concerns Regarding Section 1071 of Dodd-Frank
Concerns Regarding Section 1071 of Dodd-Frank
Recently, the Consumer Financial Protection Bureau (CFPB) finalized a rule implementing Section 1071 of the Dodd-Frank Act. This rule requires the collection and reporting of loan application data for businesses with gross annual revenue of $5 million or less. This rule will require over 35 data points of information to be collected and reported about our customers, including but not limited to:
- Credit purpose
- Credit type
- Pricing information
- Gross annual revenue
- Census tract
- NAICS code
- Ethnicity, race, and sex of principal owners
Success Bank has expressed concerns with the final rule to congressional leaders and belongs to banking organizations that have done the same. As a result of industry-wide concerns with this ruling, a Congressional Review Act resolution (H.J. Res. 50) has been introduced to express congressional disapproval of this final rule due to its privacy concerns for small businesses and the compliance burden for community banks.
We encourage you to utilize the Iowa Bankers Association advocacy forum to send a message to Congress expressing any concerns you may have. If the bill continues as is, Success Bank, and many community banks like us, will be required to start collecting this data in April 2025.
Do you ever think to yourself, "I wish my bank could..."?
Well we can, and we're ready to help you! Make the switch to our bank today!
Switch Now