ABA Statement on CFPB's Section 1071 Final Rule

 "We applaud the CFPB for finalizing a streamlined Section 1071 rule that addresses significant legal and operational concerns from the prior rule while providing clearer, more workable requirements for banks. This final 1071 rule appropriately refocuses on core lenders, products and data points without imposing undue compliance costs that would make it harder for America’s banks to serve their customers and communities. While we welcome the Bureau’s action, we continue to urge Congress to pass legislation implementing Section 1071 reporting relief so banks of all sizes can remain focused on providing credit to as many small businesses as possible and growing our economy."

Additional background:
The CFPB released a final rule in 2023 to implement Section 1071 of the Dodd-Frank Act, which requires financial institutions to report data on small-business lending. ABA joined with the Texas Bankers Association and Rio Bank in challenging the rule in federal court, which resulted in a stay of the mandatory compliance dates for members of the associations pending the outcome of the case. In an interim final rule issued last summer, the CFPB extended the compliance dates one year and committed to revising the rule. ABA filed a comment letter in December on the rule the Bureau finalized today.