ABA, Banking Groups Call for Extension on Section 1071 Proposal

The American Bankers Association led a broad coalition of financial trade groups in a letter to CFPB Director Rohit Chopra yesterday requesting a 45-day extension for comments on the bureau’s Dodd-Frank Section 1071 proposal. Section 1071 will require the collection and reporting of credit application data for small business loans, including loans to women-owned and minority-owned small businesses.

The groups emphasized that more time is needed to analyze and provide feedback on the 913-page proposed rule, including the potential costs and privacy risks that could arise. “Small financial institutions play a pivotal role supporting small businesses and their communities, and much of the information the bureau needs to move forward prudently lies with them,” the groups noted. “The present timeline does not give these institutions time to communicate through their normal advocacy channels, let alone directly to the bureau,” as Chopra urged banks to do in testimony on Capitol Hill last month.