CFPB Director Kraninger Convenes Symposium on Section 1071 of Dodd-Frank Act
Yesterday, CFPB Director Kathleen Kraninger convened the third in a series of symposia that she previously said was “aimed at stimulating a robust, proactive, and transparent dialogue with experts reflecting diverse viewpoints across a range of subject matter areas.”
While previous topics included Abusive Acts or Practices (June 25) and Behavioral Economics (September 19), the latest in the series focused on Section 1071 of the Dodd-Frank Act, which she said “requires financial institutions to collect, report, and make public certain information concerning credit applications made by women-owned, minority-owned, and small businesses.”
“Section 1071 would increase public data about small business lending,” she indicated in her opening remarks. “Congress wanted the Bureau, and the public generally to better understand the landscape for all small businesses, and specifically those owned and operated by women and minorities. And the law specifically directs the Bureau to develop a rule for the collection, reporting, and publication of certain data.”
Over the course of the symposium, two panels discussed issues pertinent to the Section 1071 conversation. The first, moderated by Grady Hedgespeth, Assistant Director of Small Business Lending Markets at the Bureau, focused on the current and future outlook for the Small Business Lending Marketplace. The second, moderated by Elena Babinecz, Managing Counsel for Research, Markets, and Regulations at the CFPB, focused on Section 1071 implementation issues. The panels were comprised of representatives from academia, think tanks, consumer advocacy organizations, industry, and government experts.
“Today’s symposium explores how to efficiently collect appropriate data without imposing unnecessary or undue costs that could limit access to credit from existing market participants or discourage new entrants into the market for small business credit,” Kraninger said.