Section 1071: The Time & Manner of Collection
The Section 1071 requirements require institutions to collect and report certain data on covered small business credit applications. There are specific provisions surrounding how and when such data will be obtained, or as the regulation refers to as, the “time and manner” in which the data is requested and collected. Section 1002.107(c)(1) states, …a covered financial institution shall maintain procedures to collect applicant-provided data…and shall otherwise maintain procedures to collect such data at a time and in a manner that are reasonably designed to obtain a response.
While the Final Rule actually provides quite a bit of procedural flexibility, there is a lot to consider in order to build a compliant and efficient process. The Commentary to this Section also states, …whether a financial institution’s procedures are reasonably designed to collect applicant-provided data is a fact-based determination and may depend on the financial institution’s particular lending model, product offerings, and other circumstances; procedures that are reasonably designed to obtain a response may therefore require additional provisions beyond the minimum criteria….
Published 2026/08/31
Amy Kudlacek
Amy brings many years of banking and compliance experience to Banker’s Compliance Consulting. She has worked for both large and small financial institutions and spent time working in every area of a bank. She started out as a teller in college and eventually became a branch manager. Her love, however, was always compliance. Amy began her career with Banker’s Compliance Consulting in 2000. Her knowledge and experiences have allowed her to develop a well-rounded and practical approach to regulatory compliance. Amy is CRCM certified, has a Bachelors Degree in Business Administration and is a graduate of the ABA Compliance School. Amy & her husband have two children at home and stay busy following their activities. They spend a lot of time in the bleachers!