Search Results for 'section 1071'

Was Section 1071 of Dodd-Frank a Massive Mistake?

August 23, 2017
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Did Congress make a huge mistake by thinking small business loans were easily commoditized? Pursuant to Section 1071 of Dodd-Frank, the CFPB is planning to collect data from companies engaged in small business finance in order to potentially screen for discrimination against women and minorities. Before deciding how exactly they’re going to do that, they’ve […]

Puerto Rico Bankers Association Calls Section 1071 Absurd and Unreasonable

June 28, 2017
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Section 1071, the law that grants the CFPB authority to collect loan application data on minority and women-owned businesses, is under fire, again. This time it’s the Puerto Rico Bankers Association in response to the CFPB’s RFI on the matter. In a letter, the PRBA points out the sheer irony of conducting costly disparate impact […]

US Treasury Calls for Section 1071 to Be Repealed

June 19, 2017
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In a 149-page report prepared for President Trump, the US Treasury has called for the repeal of Section 1071 of Dodd-Frank. Section 1071 is the governing law behind the CFPB’s jump into small business lending data collection. Citing the cost of data collection and anemic small business loan growth since 2008, the Treasury says, “Although […]

CFPB to Collect Data on Small Business Lending, Implement Section 1071 and Circulate RFI

May 10, 2017
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Watch a recap of the hearing below Read the transcript here Update: We are streaming the hearing LIVE on our home page. Update: You can download the CFPB’s Request for Information here. A transcript of Cordray’s prepared remarks are at the bottom of the page. Update: CFPB White paper estimates that merchant cash advances are […]

New Regulations, Section 1071 of Dodd-Frank Among Them, Temporarily Frozen By Executive Order

January 23, 2017
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President Trump

Image Credit: The WhitehouseAll new regulations were frozen by President Trump’s executive order on Friday, which would include the CFPB’s plan to backdoor their way into regulating small business finance. Update 2/1/17: Disagreements abound over whether or not Trump’s recent regulatory freeze can affect the CFPB. According to the WSJ, part of this stems from […]

Lenders Subject to Section 1071 of Dodd-Frank May Find Silver Lining in CFPB’s Roll Out of New HMDA Rules

October 23, 2015
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plenty of time

Last week, the CFPB finalized its update to the reporting requirements of the Home Mortgage Disclosure Act (HMDA) regulations. Under the new rules, the CFPB expects that the number of non-depository institutions that will be required to report may increase by as much as 40 percent. This will lead to a sizable increase in the […]

Underwriting Blind: Countdown to Confusion on Section 1071

July 12, 2015
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underwriting blind

Coming soon to the business lending industry near you, loan underwriters will not be allowed to know the sex, race, or ethnicity of the small business owners applying. The law known as Reg B is part of Section 1071 of the 2010 Dodd Frank Act and it expanded upon the 1974 Equal Credit Opportunity Act […]

Dodd-Frank’s Small Business Lending Data Collection Rule Could Still Take Years to Implement

January 12, 2020
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Small business lenders: Are you ready to regularly submit loan application data to the Consumer Financial Protection Bureau? No? Good, because almost ten years after Dodd-Frank passed, the provision that requires the CFPB to collect small business lending data still hasn’t been implemented. And apparently we’re still years away. Section 1071, as it’s known, modified […]

CFC on the Front Lines of the MCA Regulation Battle

November 6, 2017
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Capitol Building

As the US Senate attempts to reach a bipartisan agreement on relaxing some of the rules in the Dodd Frank legislation of 2010 that would treat banks more favorably, the MCA industry is having to fend off legislation and regulation of its own at the state and federal levels that could position funders in a […]

CFPB’s Small Business Lending RFI is Now Closed

September 18, 2017
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Rich Cordray CFPB

The window to share your two cents on the CFPB’s quest to collect data on small business lending has closed. The extended deadline to respond to the RFI was September 14th. The agency received 2,668 comments, 650 of which you can read online. Most responses that deBanked reviewed asked the CFPB to exempt certain businesses […]

Catching Up With Marketplace Lending – A Timeline

August 13, 2017
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5/17 – Funding Circle surpassed Zopa in cumulative lending to become the UK’s biggest marketplace lender 5/18 – Breakout Capital announced appointment of Douglas J. Lanzo as EVP and General Counsel 5/22 – The New York State legislature held a joint hearing on online lending 5/25 OnDeck had the maturity date of its $100M credit […]

The CFPB is Asking The Wrong Questions, Bank President Says

July 13, 2017
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David Ludwig, the Bismarck branch president of Security First Bank of North Dakota, responded to the CFPB’s small business lending RFI earlier this week. In his written comment, he points out the futility of examining race, gender and ethnicity to judge how a lender is approving business loans. These data points are what the CFPB […]

CFPB Pushes Back Small Business Lending Comment Deadline

July 7, 2017
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Government vs. Business

The CFPB has pushed back its small business lending comment deadline from July 14th to September 14th. The Request for Information is the first step of its initiative to monitor business loans to women and minorities, as directed by Section 1071 of Dodd-Frank. Only 15 comments have been submitted so far, a number likely too […]

Catching Up With Marketplace Lending – A Timeline

June 13, 2017
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A timeline of alternative finance

This story appeared in deBanked’s May/June 2017 magazine issue. To receive copies in print, SUBSCRIBE FREE 4/11 Regions Bank recruited Kabbage’s chief technology officer, Amala Duggirala, to become its chief information officer 4/12 Federal Reserve Published their 2016 Small Business Credit Survey 4/13 Marathon Partners, a minority shareholder of OnDeck, publicly called on the company […]

The CFPB’s Small Business Lending RFI Has Already Received Responses

May 28, 2017
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Three responses to the CFPB’s Request For Information on small business lending have already been submitted and here’s what they say. Kent Franzen, a career banker, said that the law limiting an underwriter’s access to an applicant’s minority-owned or women-owned business status is “literally impossible.” “Considering that in every small bank I have worked in […]

What You Need to Know About The CFPB and Small Business Lending

May 10, 2017
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CFPB Questions

On Wednesday, the Consumer Financial Protection Bureau (CFPB) held a hearing on small business lending. Here’s why it mattered and what you need to know: Why: The 2010 Wall Street Reform and Consumer Protection Act, aka Dodd-Frank, empowered the CFPB to collect data on small business lending. The CFPB is just now getting around to […]

For Factoring, Different Spin, Same Issues as MCA

April 10, 2017
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Factoring Conference

They called it the 2017 Factoring Conference, but an MCA professional would’ve hardly noticed. On the agenda was news about Dodd-Frank’s Section 1071, the now-dead NY lending legislation, usury litigation, confessions of judgment, stacking, fintech and gripes about brokers. And yet factors and MCA companies still largely live separate lives. The underlying differences between the […]

Trump’s Two-For-One Regulation Deal

January 31, 2017
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Trump Small Business Executive Order

Trump’s newest order is that for every new regulation proposed, two must be identified for repeal. If a new regulation goes into effect, the costs must be offset by the repealed regulations. The idea behind it is to strip away costs on small businesses and unburden the system. “There will be regulation, there will be […]

Fintech Hearing Summary (7/12/16)

July 13, 2016
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capitol hill

A hearing about marketplace lending put on by the House Subcommittee on Financial Institutions and Consumer Credit covered a wide array of topics on Tuesday. From merchant cash advance to business loans to consumer loans, the witnesses tried to help members of Congress understand the circumstances in their respective industries. Parris Sanz, the Chief Legal […]

Meet the Lending Platform With 0% Interest (Kiva)

January 6, 2016
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0% interest Kiva Business Loan

Chany of Angela’s Boutique in Philadelphia, PA needs $5,000 to help purchase new signage and lighting to improve her storefront. She’s been turned down by banks even though she’s been in business for more than five years. 61 participants have already contributed to her loan thanks to a marketplace lending platform, which puts her very […]