As anticipated, the CFPB has issued a Final Rule to extend the 1071 mandatory compliance deadlines. The deadlines have been extended 290 days to account for the time between the court-ordered stay and the Supreme Court ruling.
When determining your institution’s compliance tier, some additional flexibility was also granted. As everyone is hopefully aware of at this point, an institution’s compliance date is based on their small business origination volume. Through this Final Rule, the CFPB granted institutions the flexibility to use their origination volume from 2022 and 2023 for determining their applicable tier OR the option to look at their origination volume from 2023 and 2024. The CFPB notes that …institutions may use whichever set of dates they prefer.
So, those institutions that are not currently collecting gross annual revenue (GAR) in a way that would allow them to determine the number of originations to small businesses, may use one of the avenues laid out in the Rule, which includes collecting GAR for the fourth quarter of 2024 and annualizing their origination volume based on that. The deadline for filing remains June 1st after data is required to be collected for all covered institutions.
Published
2024/06/28
