Section 1071; Reg B and the CFPB; MLB
Written by Steve Van Beek
The Federal Reserve recently finalized a regulation regarding Section 1071 of Dodd-Frank. Â Section 1071 will require creditors to collect and report data on women-owned and minority-owned businesses and by small businesses. Â
Importantly, the CFPB will have authority for Section 1071 for credit unions. Â The Federal Reserve's authority extends only to motor vehicle dealers. Â Back in April, the General Counsel for the CFPB issued guidance indicating Section 1071 will not become effective until the CFPB proposes and finalizes regulations to implement the data and collection requirements. Â Â
The recent final rule on Reg B indicates the Fed will follow the CFPB's lead and delay the collecting and reporting requirements until detailed regulations are written.Â
Thus, while the new requirements of Section 1071 are not currently effective - it is something to keep on your radar if your credit union offers business loans.
In June, a NAFCU witness testified about the increased burden of Dodd-Frank - including Section 1071.
***
Apparently, there were some baseball games on last night. Â I'm not sure there is any way to describe what happened. Â If the playoffs were sneaking up on you (like they did me) - last night was a wake-up call. Â