A deep dive into the Section 1071 final rule
The CFPB’s final rule implementing Section 1071 of the Dodd-Frank Act represents major change to how banks process and handle small business loans — taking what in many banks is a bespoke, tailored financial product and requiring a whole new way of doing business. On the latest episode of the ABA Banking Journal Podcast — sponsored by Intrafi — ABA SVP Kitty Ryan discusses:
- An overview of the Section 1071 final rule.
- Implementation deadlines and partial wins in extending them from the narrow timeframes in the proposed rule.
- Other wins from ABA advocacy, including on privacy and on racial and ethnic identification that aligns the final rule more closely with the statute.
- Software challenges banks will face as they implement the final rule.
- Despite a few improvements, why ABA continues to be disappointed in the final rule — with an open advocacy call for Congress to rescind the rule.