CFPB to Hold 1071 “Technical Readiness” Session

As you likely know, the Section 1071 Rulemaking will present a substantial challenge for many financial institutions. We also know it’s difficult to get people excited about a final rule that hasn’t even been issued and isn’t expected to be issued until March 2023.

While we don’t want anyone losing sleep over Section 1071 (at least not yet), we’ve been saying for quite some time that you do need to start thinking through the small business data collection requirements (as proposed) and how they will impact your institution. Even before issuing a final rule, the CFPB is already looking ahead to implementation and will be hosting two sessions on “Technical Readiness.”

The first session will be conducted virtually on August 19, 2022, and an in-person event will also be held on September 15th. If there is enough interest, a virtual option may be added to the September session. Please note you must RSVP to attend either session.

It’s important to note that it appears these sessions will be geared more toward the system/software requirements, as the CFPB indicates the following individuals should attend:

“In-house technical staff” within financial institutions;
Core Processing Vendors;
Side Processors; and,
“Other third-party technology”

A sample draft Filing Instruction Guide (FIG) that was put together based on the proposal will be reviewed. The CFPB also notes it will solicit feedback on the best ways to build a system to receive 1071 data and work with those systems already in use.

Regulation B Resources!

 

 

Diane Dean

Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients. Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!

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