One of the challenges of the Section 1071 Rule has little to do with 1071 and much to do with HMDA. Since HMDA does apply to certain commercial loan application scenarios, it could appear as though a credit request could fall under both HMDA and 1071 requirements. The CFPB does not, however, want institutions to double up these data collection/reporting efforts. Thus, the 1071 Rule dictates that, if an application meets the coverage requirements for HMDA, it’s a HMDA-reportable application, even if the application is from a small business and would otherwise be subject to 1071 reporting. An application can only be subject to 1071 if it is not subject to HMDA. This is true regardless of whether the financial institution itself is actually a HMDA reporter which means that non-HMDA institutions who fall under the 1071 requirements are going to need to understand HMDA coverage.
Jerod explains more in the video.
Published 2026/07/17