Regulation B - Small Business Loan Data Collection and Reporting Rules (Section 1071)

On August 31, 2021, the Consumer Financial Protection Bureau (CFPB) published a 918-page notice of proposed rulemaking (NPRM) to implement Section 1071 of the Dodd-Frank Act. That section amends the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect and report certain data in connection with credit applications made by women- or minority-owned businesses and small businesses.

  • Comments on the NPRM were due by Janaury 6, 2022.
  • Compliance with a final rule will be mandatory 18 months after publication, which is expected by March 2023.

Key aspects of the proposal include, but are not limited to:

  • Who is covered – The rule applies to financial institutions, however a proposed activity-based exemption would exempt financial institutions that originate less than 25 “covered credit transactions” to “small businesses” in each of the two preceding calendar years. It is estimated that the rule will apply to approximately 3,600 to 3,800 (70% to 73% of the total) banks and Savings Associations.
  • What is a “Small Business” – The CFPB is proposing to define a “small business” as one that had $5 million or less in gross annual revenue for its preceding fiscal year.
  • What is an “Application” – The NPRM proposes to adopt the Regulation B definition of an “application” but exclude:
    • Reevaluation requests, extension requests, or renewal requests on an existing business account, unless the request seeks additional credit, and
    • Inquiries and prequalification requests.
  • What is a “covered credit transaction” – The CFPB is proposing to define a “covered credit transaction” as one that meets the definition of business credit under Regulation B. The term:
    • Includes loans, lines of credit, credit cards, and merchant cash advances.
    • Does not include trade credit, public utilities credit, securities credit, and incidental credit as defined in Regulation B.
  • What information is collected and reported – Financial institutions must collect 21 fields of data including the race, sex, and ethnicity of the principal owners of the business, the credit type, the amount applied for, action taken, pricing, census tract, gross annual income, the NAICS code, and much more. The sex of the applicant includes, “male”, “female”, “I do not wish to provide this information”, and “I prefer to self-identify as_____”.
What You’ll Learn
  • Who is covered by the new regulation,
  • The definition of “small business,”
  • The definition of “application,”
  • Which transactions are reportable and which are exempt from reporting,
  • The 21 data fields to be collected,
  • The data collection form,
  • The tolerances applied to the collected data,
  • The “firewall” concept,
  • The rules for reporting data to the CFPB,
  • What data gets published, when it gets published, and how it gets published,
  • The recordkeeping requirements,
  • The enforcement provisions,
  • The likely effective date of the rule, and
  • The five steps that need to be addressed before the final rules are published.
Who Should Attend
The program is designed for the board of directors, senior management, loan officers, compliance officers, training staff, and auditors.

Continuing Education (CE) Credits

This webinar is recommended for 2.5 CE Credit Hours. Each attendee will receive a Certificate of Attendance for self-reporting of CE Credits.

View Delivery Options

Instructor

Michael Christians
Michael Christians

As principal of Michael Christians Consulting, LLC, Michael assists financial institutions and organizations across the country with ensuring their compliance programs conform to Federal laws and regu... read more.

Course TitleCreditsStart DateStart TimeDelivery TypeDelivery OptionInstructor / LocationPrice
Regulation B - Small Business Loan Data Collection and Reporting Rules Webinar.25 Any AnyWebinarOn-Demand Michael Christians$279.00 Register Now
Delivery Options

Webinars for Banks and Credit Unions

Live Webinar:

INCLUDES 30 DAYS OF ONDEMAND PLAYBACK! With this option, you will participate in the webinar as it is being presented. You will login to the webinar on your PC to view the PowerPoint presentation, and you have the option of using your PC speakers or a phone for the audio. You can type and send your questions to the instructor.  And don’t worry if you miss the webinar, you can still view it for up to thirty days after it takes place!

Live Plus Twelve Months OnDemand Playback:

With this option, you will receive the live version, then you will receive an e-mail that contains a link to the PowerPoint slides (to download, print, and copy) as well as a link where you will view and hear the entire webinar just as it was delivered, featuring the full-color PowerPoint presentation with audio. You can pause, fast-forward and rewind as needed, which makes it an effective training tool. The link will be available to you (and anyone else in the company) for up to twelve months and can be accessed 24/7 as many times as you wish. Delivered via e-mail the day after the webinar takes place.

Live, Twelve Months OnDemand Playback PLUS Digital Download:

By adding the Digital Download to your order, you will be adding access to make the webinar part of your training library.  You can pause, fast-forward and rewind as needed, which makes it an effective training tool. With this option, you will receive a download of the PowerPoint slides as well.  Access to the Digital Download is for the life of your library.

Powered by
0
    0
    Your Cart
    Your cart is emptyCourses and Events