CFPB Extends Section 1071 Rule Compliance Dates

As previously reported, in addressing the fact that current stays of the section 1071 small business data collection and reporting rule only apply to the applicable plaintiffs, intervenors and their members, the CFPB advised in May 2025 that it would not make enforcement of the rule a priority in order to provide relief to parties not covered by any court stay of the rule. The CFPB has now issued an interim final rule to extend the compliance dates of the rule for all lenders subject to the rule. The original, revised and new compliance dates are as follows:

Under the rule as adopted originally, lenders are in Tier 1 if they originated at least 2,500 covered loans in both 2022 and 2023, lenders are in Tier 2 if they originated at least 500 covered loans in both 2022 and 2023 and were not in Tier 1, and lenders are in Tier 3 if they originated at least 100 covered loans in both 2024 and 2025 and were not in Tiers 1 or 2. In the preamble to the final rule, the CFPB advises that "[c]overed financial institutions are permitted to continue using their small business originations from 2022 and 2023 to determine their compliance tier, or they may instead use their originations from 2023 and 2024, or from 2024 and 2025." The CFPB also advises that "[c]overed financial institutions are permitted to begin collecting protected demographic data required under the 2023 final rule 12 months before their new compliance date, in order to test their procedures and systems."

As we also reported previously, the CFPB has indicated that it plans to reopen rulemaking on the section 1071 rule.

Comments on the interim final rule are due by July 18, 2025.

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