1 articles · Updated · The National Law Review · May 20
Summary
May 1's final CFPB rule sharply scales back Section 1071 reporting by lifting the coverage trigger from 100 to 1,000 annual originations and setting one compliance date of Jan. 1, 2028.
The bureau said it was responding to compliance-cost and market-disruption concerns tied to the 2023 rule, while three federal court challenges remain pending.
Key carve-outs exclude Farm Credit System lenders, agricultural loans, merchant cash advances and business loans of $1,000 or less; the definition of a small business also drops to $1 million in annual revenue from $5 million.
Five discretionary data fields are removed, including pricing, denial reasons and application method, while demographic reporting is narrowed to aggregate race categories and binary sex data.
CFPB estimates the narrower rule would still capture 92% to 93% of depository institutions' small-business loan volume, with a 12-month good-faith grace period running through Dec. 31, 2028.