The CFPB’s revised Section 1071 proposal signals a new chapter — but readiness remains essential
On November 12, 2025, the Consumer Financial Protection Bureau (CFPB) issued a scaled-back proposed rule revising its Section 1071 small business lending data collection requirements under the Equal Credit Opportunity Act. The proposal narrows the scope of covered institutions and data fields, raises the origination threshold, and sets a uniform compliance date of January 1, 2028.
While the rule is still subject to public comment and finalization, the message is clear: Section 1071 is moving forward, and institutions that treat this moment as an opportunity to plan and test — rather than wait — will be better positioned for transparency, fair-lending alignment, and competitive advantage.
In Wolters Kluwer’s webinar, Section 1071 at a crossroads: Preparing for what’s next, gathered compliance leaders from Truist Bank, First Citizens Bank, and KeyBank to discuss how to keep momentum with the newly issued rule.
Start with executive alignment and governance
Readiness begins at the top.
Truist Bank established enterprise-wide governance that brought business units and compliance teams together to collaborate on implementation. Early stakeholder mapping and a clear implementation plan reduced downstream friction.
For Truist, the initial effort focused on mapping where small-business lending occurs across the bank — a complex task for an organization shaped by mergers and multiple origination systems.
Keeping stakeholders engaged through routine updates (monthly touchpoints) preserved alignment even when implementation was paused. This habit can reduce friction now that the CFPB rulemaking has resumed.
Invest in enterprise education to build a culture of compliance
First Citizens implemented layered training: an enterprise primer on Section 1071’s objectives and targeted job aids for business units to use in customer conversations.
A culture of compliance begins with understanding. Training that ties regulatory intent to everyday interactions builds understanding and trust across employees and with customers.
Use analytics to know your own story – and reduce errors
KeyBank, an institution in the tier-1 compliance category, approached Section 1071 through a data and analytics lens, using existing application data and proxy techniques to model what compliance will require.
An early gap analysis identified available and missing fields and helped in establishing a cross-disciplinary core team to drive change.
Where full data capture isn’t yet possible, run analytics on available fields, benchmark against public CRA small‑business loan registers, and use proxies to test workflows.
Compliance analytics shouldn’t wait for a final rule. Building data fluency now enables institutions to identify disparities, improve decision-making, and demonstrate transparency.
Shared operational themes: Digital transformation as a compliance catalyst
Each institution reported that Section 1071 has accelerated the move away from paper processes and toward digital transformation across lending operations.
At Truist, the push toward digitization meant retiring paper-based and fax-based applications and keeping these on an exception-basis.
The consensus: digital maturity is beneficial to compliance readiness. Automated data collection, centralized systems, and integrated analytics all reduce manual risk and increase reporting confidence.
Turning regulatory uncertainty into organizational strength
While rulemaking pauses can disrupt timelines, they also provide valuable space for reflection and refinement. Across all three institutions, these operational recommendations emerged:
- Secure executive buy‑in and maintain governance oversight
- Form a cross‑functional core team and meet regularly
- Test data capture and data quality; run proxy analytics where needed
- Maintain layered education and clear communication channels
- Monitor CFPB and industry developments
- Accelerate digitization where practical
- Treat compliance as long‑term institutional capability, not a one‑off project
Conclusion: Preparation today creates competitive advantages tomorrow
With the CFPB’s revised proposal now open for comment, institutions have a renewed opportunity to reflect, test, and strengthen processes. Those that use this time to map lending activity, build governance, train staff, and improve analytics will reduce friction with the final rule — and may gain operational and competitive benefits in the meantime.
Future-proofing Section 1071 compliance is less about predicting every regulatory detail and more about building adaptable institutional capability. The proposed rule may simplify implementation, but the need for readiness, governance, and data fluency remains unchanged.
