February 1, 2022 – The enactment of Section 1071 of the Dodd-Frank Act will soon transform the credit market, expanding the remit of the Consumer Finance Protection Bureau (CFPB) to include small-to-midsize business (SMB) lending. Section 1071 will have cultural and training implications that will be enterprisewide for lending financial institutions.
This report analyzes the impact of Section 1071 as currently proposed, including the cultural, technological, and operational impacts it will have on SMB lenders. The findings in this report are based in part on conversations with regulators, lobbyists, and lenders as well as a survey, fielded prior to the notice of proposed rulemaking, about lender activities in the SMB credit market, including lender knowledge about Section 1071.
This 25-page Impact Report contains three figures and one table. Clients of Aite-Novarica Group’s Commercial Banking & Payments service can download this report and the corresponding charts.