September 19, 2021

Volume XI, Number 262

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September 16, 2021

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Dodd-Frank 1071 – Initial Reactions to the CFPB’s NPRM Webinar [VIDEO]

On September 7, the CFPB issued a Notice of Proposed Rulemaking regarding Dodd Frank Section 1071. This provision of the Dodd-Frank Act will require that financial services providers making loans to small businesses, women-owned businesses, and minority-owned businesses collect and report HMDA-like data points to the CFPB. The Bureau, in turn, will make some of this data publicly available. Section 1071 will present substantial compliance challenges and will create new sources of risk for financial services institutions offering small business and commercial credit products.

On Wednesday, September 8 at 2:00 p.m. CT, Bradley attorneys Christopher Friedman, Brian Epling and Michael Gordon hosted a webinar in which they outlined the contours of the proposed rule (including exemptions), present initial reactions, and discussed ways in which financial services providers can start working to prepare for this significant new regulatory regime.

  • Section 1071 broadly captures most financial institutions offering financing to small businesses.

  • The 18-month compliance deadline significantly reduces the ramp-up period for compliance with the rule. 

  • The HMDA-like requirement will likely result in substantial compliance challenges for commercial lenders and finance companies that have historically not faced significant regulatory oversight.

  • The breadth of Section 1071 will impact finance companies differently based on the size of the finance company, customer base, and previous compliance experience.

 

© 2021 Bradley Arant Boult Cummings LLPNational Law Review, Volume XI, Number 256
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About this Author

Christopher Friedman Nashville Lawyer Bradley Arant Boult Cummings Law Firm
Associate

Chris Friedman is a regulatory compliance attorney and litigator who focuses on helping consumer finance companies and small business lenders, as well as banks, fintech companies, and other participants in the financial services industry, address the challenges of operating in a highly regulated sector. Chris focuses on both small business lenders and alternative business finance products and has helped non-bank small business lenders, banks who make small business loans, commercial credit counselors, lead generators, and others in the industry. He helps clients launch new products,...

615-252-3504
Brian Epling Corporate Compliance Lawyer Bradley Arant Boult Cummings LLP
Associate

Brian Epling assists financial services clients, including small-dollar lenders, auto finance companies, and mortgage servicers, with navigating regulatory compliance and litigation issues.

On the regulatory compliance side, Brian has assisted financial services clients with policies and procedures to comply with state and federal law and investor requirements. With respect to litigation, practicing in both Tennessee and Kentucky, Brian has successfully argued dispositive motions and appeals involving alleged violations of the Truth in Lending Act, Real Estate Procedures Act, and...

615-252-2340
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