Brace yourselves! On March 30th, the CFPB unleashed the long-awaited Dodd-Frank Section 1071 Rule, and it's about to shake the finance world to its core.
Thought the CRA data file was a migraine-inducing burden? Section 1071's reporting requirements will make you beg for mercy. With a jaw-dropping 81 fields to complete for each loan record (compared to a measly 16 for CRA small business loans), this new rule is nothing short of a bureaucratic nightmare.
And guess what? See more +
Brace yourselves! On March 30th, the CFPB unleashed the long-awaited Dodd-Frank Section 1071 Rule, and it's about to shake the finance world to its core.
Thought the CRA data file was a migraine-inducing burden? Section 1071's reporting requirements will make you beg for mercy. With a jaw-dropping 81 fields to complete for each loan record (compared to a measly 16 for CRA small business loans), this new rule is nothing short of a bureaucratic nightmare.
And guess what? "Covered" lenders aren't just the usual suspects. Now, credit unions, commercial finance companies, and more will be dragged into the reporting quagmire if they've originated at least 100 covered transactions in each of the last two calendar years. That's right – the days of only large banks reporting are officially over.
But wait, there's more! A labyrinth of "Compliance Date Tiers" will have different compliance dates, kicking off as early as October 1, 2024. However, some unfortunate lenders will need to start data collection during Q4 of 2023 just to determine their covered transaction volumes.
Watch this webinar, as we dissect this monstrous 888-page document. Hold onto your hats – it's going to be a wild ride!
Section 1071 In-Depth Webinar Agenda
A sampling of just a few of the dozens of questions to be addressed
What is the first and most critical question you must ask all business borrowers?
Which lenders need to collect covered transactions starting October 1, 2023 (yes – 2023!).
What’s up with the “Tiered Compliance Dates”?
What is a “covered transaction”?
What is the difference between covered transactions to qualify a covered lender and covered transactions to be reported by covered lenders?
Are farm loans to be reported?
Is it true that loans purchased no longer will be reported?
What’s the difference between CRA handling of small business loan participations and how they are handled in 1071?
What commercial loans are excluded from 1071 reporting?
Is there a safe harbor for reporting mistakes?
Does a majority of the principal owners have to be minorities, or women or LGTBQ+ folks to be a minority, or women, or LGBTQ+ owned business? (the answer may surprise you) See less -
