Section 1071 Firewall: Employees Involved in Making a Determination

Section 1071 requires a “firewall” in order to prohibit employees …involved in making any determination concerning a covered application…from being able to access demographic information regarding the applicant’s principal owners. So, what does “involved in making a determination” mean? Essentially, it’s anyone participating in the evaluation of a covered application or the creditworthiness of a covered applicant. This could include those employees (whether individually or in a group) that:

• Make approval or denial decisions (or determine the reasons for denial)
• Determine whether a counteroffer is appropriate and/or the terms of such counteroffer
• Participate in loan committee decisions
• Act as underwriters
• Determine requirements for collateral and/or guarantors
• Set credit amounts, limits or terms
• Recommend to others whether an application should be approved or denied

The Rule also provides examples of activities that do not constitute being “involved in making a determination”. Join us to learn more!

Published
2025/03/31