NEWS: The CFPB has updated its list of “frequently asked questions,” to help credit unions and other financial institutions comply with the new Reg. B small-business lending data collection rule.
The rule, which implements Section 1071 of the Dodd-Frank Act, will require many financial institutions to collect and report data on lending to small businesses with gross revenue of $5 million or less in their previous fiscal year. The League has information on the rule in our ii Release No. B083.
The rule has a tiered compliance date schedule, starting October 1, 2024, for financial institutions that originated at least 2,500 covered small business loans in both 2022 and 2023. Those with fewer originations have later compliance dates.
To help financial institutions, the CFPB updated several FAQs to clarify who is covered by the small business lending rule. For example, they now explain that a financial institution that meets the origination threshold in each of the two immediately preceding calendar years is subject to the rule, regardless of whether it has a branch or office in a metropolitan statistical area.
The FAQs also:
- Outline qualified covered credit transactions and exemptions;
- Provide a detailed breakdown of the types of transactions a financial institution must count when determining whether it satisfies the origination threshold;
- Discuss whether a financial institution that is not subject to HMDA reporting is required to count HMDA-reportable loans as covered originations;
- Address how to count a covered origination if multiple financial institutions were involved in originating the covered credit transaction or when a covered credit transaction is extended to multiple borrowers but only one is a small business; and
- Explain methodologies financial institutions can use to calculate estimated covered originations.
The CFPB also released a compliance aid with additional information covered during a recent presentation.
League Legal Affairs Attorney’s Conference
Jul 25, 2023 9:00 AM – 3:00 PM, Madison WI – Information and Registration.
The League Legal Affairs Attorney’s Conference brings together attorneys from Wisconsin’s Credit Unions for a day of discussion around Compliance and Legal matters of importance to our members. Please invite your credit union attorney to attend!
- 9:00 am – 9:30 am
Welcome and Coffee
- 9:30 am – 10:15 am
Paul Guttormsson, Senior Vice President & General Counsel | The League
The New Reg. B Small Business Lending Rule
- 10:15 am – 10:30 am
Break
- 10:30 am – 12:00 pm
Tom Theune, Director | Office of Credit Unions, DFI
- 12:00 pm – 12:30 pm
Lunch
- 12:30 pm – 1:00 pm
John Engel, Director of Legal Affairs | The League
HELOC Compliance Tensions
- 1:00 pm – 2:00 pm
Melissa Caulum Williams | Senior Counsel | Husch Blackwell
HR Compliance Issues
- 2:00 pm – 2:30 pm
Kim Hoppe, Compliance Resource Analyst | The League
Remote Online Notarization
- 2:30 pm – 3:00 pm
Roundtable Discussion Adjourn