Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

House Dems apply their own Section 1071 rulemaking pressure

Email A Friend Printer Friendly Version
0 comments
Inside the Beltway
Tuesday, September 8, 2015

In a June 30 letter to Consumer Financial Protection Bureau (CFPB) Director Richard Cordray, 19 Democratic Senators urged the bureau to expedite its rulemaking process on Section 1071 of the Dodd-Frank Act. Now, 84 members of the House of Representatives have sent a letter of their own, also urging the CFPB to move forward on Section 1071.

“For three years, the CFPB has listed Section 1071 rulemaking (Regulation B) as a Long Term Action item on its Unified Agenda and Regulatory Plan. Section 1071 mandates the CFPB to centralize small business lending data to help lending institutions gain a broader understanding of the credit needs of small businesses. Now is the time for CFPB to initiate rulemaking on Section 1071,” the Aug. 21 letter to Cordray stated.

The letter was led by Reps. Donald M. Payne, Jr. (D-N.J.) and Chris Van Hollen (D-Md.).

“We were encouraged by your remarks that ‘in theory and practice’ the collection and disclosure of small business lending data would be similar to the collection and disclosure of mortgage credit data under the Home Mortgage Disclosure Act (HMDA),” the letter continued. “As the agency finalizes the HMDA regulation, we urge you to initiate a comparable Section 1071 rulemaking.”

It was noted in the letter that small business lending had plummeted since the Great Recession.

According to the U.S. Small Business Administration, “[s]mall business borrowing conditions continued to improve gradually in the first quarter of 2015. For example, the percent change in small business loans outstanding (in amounts of $1 million or less) remained positive or unchanged for the sixth consecutive quarter. Small business loans outstanding totaled $595 billion and remained relatively flat from the previous quarter, but year-over-year (Q1 2014 to Q1 2015) showed an increase of 1.7 percent.”

Large consolidated lenders with $10 billion or more in assets numbered 112 in the first quarter of 2015, representing about 2 percent of all depository lenders, were found to “dominate the banking industry in terms of small business loan share,” holding roughly 48 percent of the small business loan market. Total small business lending by these lenders totaled $286.3 billion in the first quarter of 2015.

Alternative lenders were found to have higher approval rates, but tend to be more costly. Of the three traditional lenders, large banks had the lowest approval rates.

“Within the banking industry, small banks have higher approval rates when compared with large lenders. The approval rate gap (for loans by small business owners) between small and large lenders appears to be narrowing as these institutions continue to make more loans,” the Small Business Administration stated. “In general, small business loans outstanding continue to recover at a gradual pace. Small depository lenders continue to approve more loans than their counterparts. Small firms seeking credit have more options available to them, but the cost of credit provided by non-traditional lenders tends to be higher when compared to traditional lenders.”

Related Article

Senators urge expedited small business data rulemaking

Today's other top stories
Powell testifies to Congress about trade policy impacts on interest rates
CFPB outlines new approach to criminal enforcement referrals
How changing consumer behavior has led to a ‘new normal’ in credit scoring
Banking agencies seek feedback on capital standards revisions
Trades signal support for modernized payments, bond programs


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
Please enter a comment.
CAPTCHA Validation
CAPTCHA
Code:
Please enter the word displayed in the image above. Please enter the word displayed in the image above.
: 
Please enter your name.
: 
Please enter your email address.
This field must contain a valid email address.
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 3003 times.

Monthly Newsletter

Dodd Frank Update July 2025

Cover Story:

Former CFPB attorneys say state CFPA rights are for the courts to decide


News by Topic   News by Edition   News by Agency   News by Industry   In-depth Reports   Events
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update June 2025
Dodd Frank Update July 2025
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
2025 State of the Industry
CRA and Affordable Housing
2025 State of the Industry
Who's My Regulator?
Fair Lending
Mortgage Technology
Marketing Compliance for Lenders
Archives
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars

Library   About   Subscribe   Other Publications
Data Privacy Vault Court Actions
Keys to Real Estate podcast Enforcement Documents
Blog - Tuesdays with Mary Guidance Documents
1071 Compliance Guide White Papers
eClosing Solutions Showcase Position Papers
Executive Interview Series Legislation
Lender Associations Regulations
The Dodd-Frank Act Reports, Studies and Surveys
Dodd-Frank Summary & History Federal Register Notices
 
Dodd Frank Update
Contact / Editors
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2025 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
IN-DEPTH REPORTS
INDUSTRY
EVENTS
LIBRARY
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Conference Coverage
Consumer Protection
Data Privacy
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
Current Edition
June 2025
May 2025
April 2025
Archives
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
2025 State of the Industry
Real Estate Compliance Outlook
CRA and Affordable Housing report
Who's My Regulator?
Fair Lending
Marketing Compliance for Lenders
Archives
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
2025 Economic Outlook Series
CFPB's Shake-Up & Its Impact on You
Data Privacy Compliance
Fintech Partner Compliance
Strategies post-NAR settlement
Industry and Regulatory Outlook
Securing Your Cyber Network
Compliant Marketing Tactics
2024 Economic Forecast Series
Webinar Archives
Data Privacy Vault
Keys to Real Estate podcast
Blog - Tuesdays with Mary
1071 Compliance Guide
eClosing Solutions Showcase
Executive Interview Series
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Request a Media Kit
Social Media
Are You An Expert?
Subscriber Agreement