Section 1071 of Dodd-Frank amended the Equal Credit Opportunity Act to require financial institutions to collect and maintain certain data in connection with credit applications made by women- or minority-owned businesses and small businesses. Such data includes the race, sex, and ethnicity of the principal owners of the business.
In April 2011, the CFPB issued guidance indicating that the CFPB would not enforce Section 1071 until the CFPB issued implementing regulations.
Since then, the development of regulations to implement Section 1071 appeared as a “long-term action” item in the CFPB’s semiannual rulemaking agendas issued in January and July 2013 but was not mentioned in its most recent semiannual rulemaking agenda issued in December 2013.
At the Practicing Law Institute’s 19th Annual Consumer Financial Services Institute (co-chaired by Alan Kaplinsky) held earlier this week in New York City, a CFPB representative indicated that the CFPB will not be issuing regulations this year to implement Section 1071.