By: Jeff Bond
As published in the Scotsman Guide
ComplianceJune 12, 2023
Q&A: Timothy R. Burniston, Wolters Kluwer
Time is running short to prepare for new data regulations
While small businesses are known to drive the nation’s economic engine, women- and minority-owned businesses have long been left behind on the road to prosperity. One reason has been their inability to secure loans and capital.
The Dodd-Frank Act of 2010 included Section 1071, which mandated the collection and dissemination of data on loan applications to small businesses, including those owned by women and minorities. The data is aimed at enforcement of fair lending laws and to assess whether the needs of businesses targeted by the law are being addressed.
“This is a very far-reaching regulation with significant implementation challenges, and it also involves the collection of very sensitive data about the status of the businesses.”
The Consumer Financial Protection Bureau (CFPB) didn’t issue rules regarding this process until March 2023. As the bureau gears up to begin enforcement, business-purpose lenders need to prepare for the extensive task of collecting data on their end. Timothy R. Burniston of Wolters Kluwer recently spoke with Scotsman Guide about the new rules and some of their possible implications for commercial real estate.
This article features insights from:
Section 1071 of the Dodd-Frank Act
As Section 1071 takes form, be on the front end of hearing the details, understanding the requirements, and complying with the regulation.
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