Demystifying the CFPB’s 1071 small business lending rule

LEGAL UPDATE: On September 14, 2023, a federal judge in the US District Court for the Eastern District of Kentucky issued an injunction prohibiting the CFPB from enforcing the Small Business Lending (1071) rule. Unlike the prior injunction issued by a Texas federal district court, this injunction applies nation-wide and to any party subject to the 1071 rule, not just the parties to the litigation. Unlike the Texas injunction, however, the Kentucky injunction does not require the CFPB to revise the effective dates of the 1071 rule in the event that the CFPB prevails in the underlying litigation. Finastra continues to work toward delivering its 1071 solution, and we are actively monitoring for further legal developments and will provide additional updates on any significant future developments. Know more.

On March 30th the CFPB issued the long awaited ECOA small business lending rule implementing the requirements of Section 1071 of the Dodd-Frank Act. This final rule will dramatically impact small business lenders and will go into effect as early as October 2024 for some larger lenders. Join two of Finastra’s in-house compliance experts - Geoffrey Schroder and Mike Fowdy - as they provide an overview of the in’s and out’s of this small business lending rule and how it will impact your institution.

During this 60-minute webinar we will cover:

• The essential elements of the 1071 small business lending rule, including details around required data collection, reuse, firewalling and reporting, along with new required applicant disclosures.
• Examine some of the potential pitfalls and opportunities available to your institution posed by this new rule.
• Start to learn about Finastra’s plans to assist you in complying with all aspects of the final small business lending rule.

Learn more about 1071