CFPB Reproposes Lending Data Collection Rule (Sec. 1071)
November 18, 2025
On November 12, the Consumer Financial Protection Bureau (CFPB) reproposed its small business finance reporting requirements (aka Section 1071). Comments are due 30 days after publication in the Federal Register.
Why it matters: The 1071 reporting requirements are intended to collect data on loan applications and originations made to small businesses. The CFPB did not exempt CRE mortgages from the final rule issued in 2023.
- CREFC advocated with other trades to exempt CRE and multifamily from 1071 reporting. Click here for the joint trade letter and click here for CREFC’s high-level letter.
- The rule originally included commercial mortgages made to small businesses with under $5 million in revenue.
- It largely exempted multifamily loans, which are reported separately under the Home Mortgage Disclosure Act (HMDA), but did not exempt loans secured by commercial real estate made to a small business.
The Re-proposal makes several helpful changes for CRE lenders, but falls short of exempting commercial mortgages and similar credit from data collection.
- It extends compliance until January 2028 and eliminates all discretionary data points. As reported by the American Banker, although the Dodd-Frank Act outlined 13 mandatory data points, the original rule included 81 mandatory data fields, “an expansion that lenders objected to as onerous and unnecessary.”
- The small business revenue threshold would be reduced from $5 million in gross annual revenue to $1 million.
- Affiliate revenue would still count in determining whether the borrower is a small business. If the legal borrower is a special purpose entity, its associated sponsor's or affiliate’s revenue could prevent it from being considered a small business.
- The definition of covered financial institution would reflect an increase in origination threshold from 100 loans to 1,000 loans in each of the preceding two years.
- As noted above, multifamily loans continue to be excluded from 1071 reporting since they are covered under the HMDA reporting.
Next Step: CREFC will set up a call for interested parties to discuss potential comments.
If you would like to join a working group to discuss the
Re-proposal or if you have any questions, please contact
Sairah Burki (
sburki@crefc.org) or
David McCarthy (
dmccarthy@crefc.org).