The New Regulation B Small Business Loan Data Collection and Reporting Rules

On August 31, 2021, the Consumer Financial Protection Bureau (CFPB) published a 918-page notice of proposed rulemaking (NPRM) to implement Section 1071 of the Dodd-Frank Act. That section amends the Equal Credit Opportunity Act (ECOA) to require financial institutions to collect and report certain data in connection with credit applications made by women- or minority-owned businesses and small businesses.

The proposed revisions to Regulation B represent one of the most significant new regulatory events in recent history. All financial institutions, except those that originate less than 25 “covered credit transactions” to “small businesses” in each of the two preceding calendar years, must implement a full compliance management system, including policies, procedures, training, and audit.

Participants receive a detailed manual that serves as a handbook long after the program is completed.

Topics

Who is covered by the new regulation
The definition of “small business"
The definition of “application"
Which transactions are reportable and which are exempt from reporting
The 21 data fields to be collected
The data collection form
The tolerances applied to the collected data
The “firewall” concept
Rules for reporting data to the CFPB
What data gets published, when it gets published, and how it gets published
Recordkeeping requirements
Enforcement provisions
Likely effective date of the rule
Steps to successful implementation of the new rules

Faculty

Kimberly Boatwright

Kimberly Boatwright is EVP and Director of Risk and Compliance at Compliance Resource, LLC, and has more than two decades of experience working in the financial services industry. Ms. Boatwright is a well-regarded financial industry risk and compliance professional with a strong background in program development and implementation. She is a thought leader who specializes in Fair Lending, Anti-Money Laundering, OFAC, and consumer compliance. During her career, she has worked for and consulted with all types of financial institutions helping to establish and evolve compliance and risk programs. She is a frequent public speaker, trainer, and author on compliance and risk management topics. Kimberly is a Certified Regulatory Compliance Manager and a Certified Anti-Money Laundering Specialist.