Section 1071 of the Dodd-Frank Act was intended to facilitate fair lending laws by identifying business and community development lending needs and barriers for small, women-owned and minority businesses. Section 1071 amended the Equal Credit Opportunity Act (ECOA), requiring financial institutions to:
- Inquire if the business is a small, women- or minority-owned business.
- Collect, maintain and annually report lending data.
- Restrict data access to relevant personnel.
- Make the data available for public disclosure.
It’s been more than ten years since the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd Frank Act) became public law. However, this is the first time Section 1071 is being fully addressed. Early this September, the Consumer Financial Protection Board published a 900+ page proposal. They also published a webpage with resources relevant to the rulemaking.
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