The CFPB not too long ago issued a compliance guide for its final rule implementing Section 1071 of the Dodd-Frank Act. Constant with Section 1071, the final rule (issued at the finish of March) will demand monetary institutions to gather and supply to the Bureau information on lending to modest enterprises, defined as an entity with gross income beneath $five million in its final fiscal year (covered by InfoBytes right here). The guide: (i) contains a detailed summary of the final rule’s specifications, such as information reporting deadlines (ii) gives complete facts on the kinds of information monetary institutions want to gather and report on modest enterprise lending applications and choices and (iii) contains parameters for covered institutions and covered originations. The guide additional breaks down reportable information points and explains the final rule’s “firewall” provision, which states that workers and officers of a monetary institution or its affiliates “involved in producing any determination” on a reportable application are commonly prohibited from accessing applicant demographic facts relating to ethnicity, race, sex, and status as a minority-owned, girls-owned, or LGBTQI+-owned enterprise. The guide specifies that specific exceptions may well apply to conditions exactly where an employee involved in selection-producing will have to have access to the information to fulfill their assigned job duties (e.g. a loan officer or loan processor). In these conditions, monetary institutions are necessary to supply notice to applicants that workers and officers involved in selection-producing may well have access to their demographic information.