The National Community Reinvestment Coalition (NCRC) released a white paper on recommendations to the Consumer Financial Protection Bureau (CFPB) on the implementation of Section 1071 of the Dodd-Frank Act dealing with small business loan data collection.
The purpose of Section 1071 is to facilitate enforcement of fair lending laws and enable communities, governmental entities, and creditors to identify business and community development needs and opportunities of women-owned, minority-owned, and small businesses.
The proposed recommendations would increase the reporting burden on banks, credit unions, and other non-depository lenders to small businesses.
The law requires the CFPB to collect data on the race and ethnicity of the borrower. However, NCRC recommends that it is not enough to require disclosures of whether the business is Asian or Hispanic; but should consider sub-categories to fully capture the experiences of Asians and Hispanics of various nationalities in the marketplace.
Also, the law requires the reporting of revenue size of the small business. NCRC wants this required disclosure to be sufficiently detailed so that policymakers and the general public can track loans to microbusinesses.
In addition to the other required data elements that are to be collected, NCRC is recommending that CFPB collect information on the pricing of the loan, points and fees and loan terms, creditworthiness of the small business and its owner, the number of employees of the small business, colateral pledged by borrowers, start up status of the business, and loan performance.
Read the white paper.
Well, for the first time I am actually glad I am 67 years old and can retire anytime I want. This government is about to complete the conversion of the US into a Fascist state...defined as private ownership with government control. They will tell us who to lend to and how the loans must be structured. All in an effort to insure fairness in the world. Time to revolt or surrender.
ReplyDeletenot a comment but you may want to fix the spelling on this word
ReplyDeletenon-depsoitory
And I agree with you
As this trickles down from the large banks to the small...community banks and small credit unions are doomed. Continued mico-management legislation will lead to only big banks and big credit unions.
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